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.
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.