by Katja Yafimava

This OIES paper analyses the EU regulatory rules governing LNG import terminals (regulated and exempted), focusing on TPA rules, use-it-or-lose-it (UIOLI) provisions, and tariffs.

The LNG sellers’ interest in the European market has been confirmed by their increased booking of EU terminal capacity on a long term basis as reflected by Zeebrugge and Montoir-de-Bretagne bookings in late 2019, with primary capacity being sold through 2044 and 2035 respectively. With only a handful of other EU terminals offering primary capacity on a long term basis and with the majority of their capacity already booked long term –on average,capacity bookings at EU import terminals expire in the 2030s –market interest in long term capacity bookings could lead to a spike in demand for remaining capacity. Even if only a few sellers not prepared to accept the risk of not being able to place their cargoes in the EU market are interested in long term bookings, with other sellers being satisfied with short term bookings, allsellers will need to know and understand the TPA rules for EU LNG import terminals.