Regulation

In December 2020, German LNG Terminal GmbH received the decision from the German Federal Network Agency granting it exemption from network access and tarif regulation. The decision is subject to review by the European Commission. As requested, it applies to the annual throughput capacity of 8 billion cubic meters of gas in the long term from the date of commercial commissioning of the terminal.

German LNG Terminal has applied for the exemption under European and German law in order to minimize the risk of changing access and tarif regulations in the long term and thus to be able to make the substantial investments needed to improve competition in gas supply and security of supply.

Under European and German law, an LNG terminal is subject to tarif and network access regulation. This means that an LNG terminal operator is not free to set its tarifs or access rules or its services. The Federal Network Agency is the independent German regulatory authority that sets tarifs and network access rules. Exemption from regulation is possible for LNG facilities if, among other things, the investment improves competition in gas supply and security of supply.