Shell’s position on the proposed Spanish National Commission of Markets and Competition’s reform of the Spanish LNG market
Mar 31, 2019
In September 2018, the Spanish National Commission of Markets and Competition (CNMC in its Spanish acronym) launched a consultation on redesigning the Spanish liquefied natural gas (LNG) market. The aim of the reform is to make better use of Spain’s LNG infrastructure and to increase competition for the benefit Spanish consumers.
Shell Energy Europe welcomes this consultation and supports the objectives of the proposed reform.
To contribute to the current debate, we have published a position paper, where we:
- identify the key challenges in the existing LNG market design; and
- propose measures that represent the best way to manage such challenges.
Proposed measures
Shell Energy Europe deem the measures proposed in the CNMC consultation overall capable of positive contributions to a better-functioning market. To achieve a more effective reform we would like to suggest further improvements in the following areas:
- maximising market flexibility;
- ensuring sufficient availability of different types of capacity products; and
- setting competitive LNG market costs.
In addition, a robust, simple, clear and binding roadmap is needed to bring the ambitious redesign plan to life.
Shell Energy Europe believes that some changes can be and should be fully implemented by the start of gas year 2020/21. These are:
- the introduction of a single regasification and storage contract across all plants;
- the reduction in tariffs to competitive levels across all plants; and
- the introduction of unbundled products.
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