• Linkedin
  • Twitter
  • Rss

Oil, Gas & Energy Law

Skip navigation

Oil, Gas & Energy Law

Global Energy Law & Regulation Portal

Join OGELFORUM

Oil, Gas & Energy Law

Global Energy Law & Regulation Portal

  • Sign in
  • Subscribe
  • Home
  • Sign in
  • About About
    1. Home
    2. About
    3. About OGEL
    4. About OGEL
    5. Founding Editor T.W. Wälde
    6. T.W. Wälde
    7. Editorial team
    8. Editorial team
    9. Contributing Authors
    10. Contributing Authors
    11. Subscriptions
    12. Subscriptions
  • Journal Journal
    1. Home
    2. Journal
    3. Browse Issues
    4. Browse
    5. Articles by Category
    6. By Category
    7. Articles by Author
    8. By Author
    9. Advance publication
    10. Advance publication
    11. Specials
    12. Specials
    13. Search
    14. Search
    15. Book reviews
    16. Reviews
  • Legal & Regulatory docs. L & R docs
    1. Home
    2. Legal & Regulatory docs.
    3. L&R by Country
    4. L&R by Country
    5. L&R by Category
    6. L&R by Category
    7. L&R recent additions
    8. L&R recent additions
    9. Search
    10. Search
  • OGELFORUM OGELFORUM
    1. Home
    2. OGELFORUM
    3. About OGELFORUM
    4. About OGELFORUM
    5. Browse archive
    6. Browse by date / topic
    7. Search
    8. Search
    9. Join
    10. Join
  • News & Events Events
    1. Home
    2. News & Events
    3. News
    4. News
    5. Events
    6. Events
  • OGEL Studies OGEL Studies
    1. Home
    2. OGEL Studies
    3. About OGEL Studies
    4. About OGEL Studies
  • Subscribe
Home > Journal > Advance publication

Addendum OGEL 5 (2019) - EU Gas Market Regulation of Offshore Transmission Lines: The Derogation for Completed Projects (Art. 49a of Directive 2009/73)

  • Sign in
  • Suggested citation
M. Nettesheim
M. Nettesheim
S. Thomas
S. Thomas

Published 16 January 2020

A new paper has been added to our OGEL 5 (2019) Special Issue on "Natural Gas Pipeline Construction and Regulation"

EU Gas Market Regulation of Offshore Transmission Lines: The Derogation for Completed Projects (Art. 49a of Directive 2009/73)

Martin Nettesheim and Stefan Thomas

Introduction

(Addendum 16/01/2020) By Directive (EU) 2019/692 the EU legislator has amended the Gas Directive 2009/73/EC with effect of 23 May 2019. Key elements of the regulatory regime of Directive 2009/73, namely unbundling, third party access, and tariff regulation, shall now also apply to gas transmission lines between a third country and an EU Member State.

It is already questionable how this amendment can be considered to enhance competition within the internal market. By definition, such third-country transmission lines do not connect Member States. Their sole effect is to increase market volume, which fosters competition and reduces prices on downstream markets. However, it is not the purpose of this article to elaborate in general on why the soundness and appropriateness of the new regulatory approach is questionable. Rather, we venture to analyze the impact, which the entering into force of the new legislation can have on third-country transmission lines that were conceptualized and financed under the old regulatory regime and are now being forced under a new and unforeseeable regulatory standard.

The new framework can bear significantly on the economic assumptions underlying such third-country transmission lines. Major gas infrastructure projects are characterized by special features that must be taken into consideration when defining the regulatory framework in which they operate. The significant volumes of financing often requires the conclusion of long-term agreements on the exclusive use of pipelines in order to make sure that sufficient income can be generated to recover the construction cost. Therefore, such long-term exclusive agreements are often linked to financing commitments of investors. Such financial structure would not be compatible with the normal requirements under EU gas market regulation. The direct extension of regulation, without any transition period, to also cover gas infrastructure projects already planned or financed, being under construction, or even in operation may, therefore, counteract the financing structure of such projects and thereby endanger their investment and eventually their efficient operation. This applies to gas transmission lines between EU Member States as well as to pipelines from a third country into an EU Member State.

You can download the paper here www.ogel.org/article.asp?key=3875

Footnotes omitted from this introduction.

To read this article you need to be a subscriber

Sign in

Forgot password?

Sign in

Subscribe

Fill in the registration form and answer a few simple questions to receive a quote.

Subscribe now

Suggested Citation

M. Nettesheim; S. Thomas (2020, forthcoming) "Addendum OGEL 5 (2019) - EU Gas Market Regulation of Offshore Transmission Lines: The Derogation for Completed Projects (Art. 49a of Directive 2009/73)"
(OGEL, ISSN 1875-418X) January 2020, www.ogel.org

"Advance publication" is the name given to material that is published ahead of its appearance in a regular structured issue of our Journal. It is also possible to monitor this via RSS. Subscribers will receive update alerts via e-mail of the published articles as soon as they have been added to the website.

Other recently published material:

China's State-controlled Approach to Cross-provincial Gas Pipeline Planning

7 February 2023

Addendum OGEL 5 (2022) - Lessons Learned from the Energy Activities in the Gulf of Mexico Region as a Guide for Accelerating and Financing Energy Activities in the Atlantic Region during the Energy Addition

7 February 2023

Changing the Conversation on Energy Transition - Aligning Interests or Mandating Actions to Combat Climate Change in Challenging Times

1 February 2023

Addendum OGEL 5 (2022) - WTO Law on Subsidies and Local Content Rules in the Offshore Renewable Energy Sector

16 January 2023

The Domestication of the Principle of Permanent Sovereignty over Natural Resources in the Tanzania Petroleum Industry: The Move Towards Nationalism is it a Sovereign Right or Wrong?

10 January 2023

Complete listing of Advance publication.

Call for contributions

OGEL Call for Papers: Carbon Capture and Storage

Professor Tara Righetti and Dr. Matteo Fermeglia

  • Professor Tara Righetti
  • Dr. Matteo Fermeglia

OGEL Call for Papers: The Impact of the War in Ukraine on the Energy Sector

Agnieszka Ason, Konstantin Christie, Prof. Kim Talus

  • Agnieszka Ason
  • Konstantin Christie
  • Kim Talus

OGEL Call for Papers: Energy Market Creation: Liberalisations and Transformations

Prof. Kim Talus

  • Kim Talus

Call for Papers: OGEL Energy Law Journal 2023

Call for Papers: OGEL Energy Law Journal 2023

OGEL Editorial Team

  • More
  • Contribute

Stay connected

Sign up for our email alerts.

  • Issues
  • Advance publication
  • News
  • Linkedin
  • Twitter
  • RSS

Join the debate

Want to join OGELFORUM, our unique platform for oil, gas and energy issues?

Simply fill in the registration form to start your trial membership.

Download the app

  1. App store
  2. Google play

The Oil, Gas & Energy Law Intelligence (OGEL, ISSN 1875-418X) Journal and OGELFORUM listserv focus on recent developments in the area of oil, gas, energy law, regulation, treaties, judicial and arbitral cases, voluntary guidelines, tax and contracting, including the oil, gas, energy geopolitics. Read our Terms & Conditions here, and our Privacy Policy here.

About OGEL

  • Terms & Conditions
  • Contribute
  • Subscriptions
  • Contact
  • Help

Other publications

  • Transnational Dispute Management (TDM)

© 2004 - 2023. Published by MARIS.

  • Home
  • Contribute
  • Subscriptions
  • Contact
  • Help