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Q&As on REMIT – Question III.3.36.

What constitutes delivery of LNG into the European Union?


Answer:

Article 3(1) of the Commission Implementing Regulation (EU) No 1348/2014 provides a list of reportable contracts, according to which contracts in relation to the supply of electricity or natural gas with delivery in the European Union shall be reported to the Agency.

As far as liquefied natural gas (LNG) contracts are concerned, the Agency considers any importation or offloading of liquefied natural gas in any LNG facility (including flanges that connect the LNG vessel to the LNG terminal) as ‘delivery in the Union’ as far as the delivery of the product takes place in the European Union.

In the situation described above, assuming the delivery of the liquefied natural gas is in the European Union, both parties to the contract will need to register with the relevant National Regulatory Authority/ies as the contract is reportable to the Agency.

Reload-contracts at a regasification terminal or at a vessel where the delivery of the product is not the European Union are not reportable.

Last update: 24/03/2016   RSS_Icon Subscribe to this Page’s RSS