LNG terminal, Deutsche Ostsee in Lubmin, starts operations with support of Frontier Economics.
The LNG terminal, Deutsche Ostsee in Lubmin, started operations on 14 January. The floating terminal is only the second LNG import infrastructure and the first purely private sector LNG terminal in Germany. Thanks to a fast planning and approval process, the terminal is set to secure Germany's gas supply for this winter.
Frontier Economics supported Deutsche ReGas GmbH, as operator of the terminal, in the procedure to exempt the terminal from third-party access and tariff regulation. In two expert opinions, Frontier showed, among other things, that:
- the terminal improves security of supply and competition in Germany and the EU.
- the exemption does not adversely affect competition; and
- the investment would not be made without the exemption due to prohibitive risks under a regulated framework.
The German regulator BNetzA considered these conditions for exemption from regulation, confirmed by Frontier's analyses. In its decision to exempt the terminal from regulation for 20 years, the BNetzA referred extensively to Frontier’s expert reports.
Frontier regularly works on regulatory exemptions and competition issues relating to LNG, gas pipelines and other energy assets.
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