Gas Regulation in 32 Jurisdictions Worldwide Contributing Editors: Florence Ninane, Alexandre Ancel 2012 and Liliana Eskenazi
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® Gas Regulation in 32 jurisdictions worldwide Contributing editors: Florence Ninane, Alexandre Ancel 2012 and Liliana Eskenazi Published by Getting The Deal Through in association with: Æ´LEX Alexander Vassardanis & Partners Law Firm Allen & Overy LLP Arthur Cox Bahamondez, Alvarez & Zegers Bech-Bruun Boga & Associates Chandler & Thong-ek Law Offices Limited CMS Adonnino Ascoli & Cavasola Scamoni CMS – Rui Pena & Arnaut CRB Africa Legal Fiebinger Polak Leon Rechtsanwälte GmbH Grata Law Firm Hoet Pelaez Castillo & Duque Kluge Advokatfirma DA Kocián Šolc Balaštík advokátní kancelárˇ sro López Velarde, Heftye y Soria, SC Lupicinio Abogados International Attorneys Lydian Lawyers Mac´ešic´ & Partners Martelli Abogados Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados Mehmet Gün & Partners Minter Ellison Lawyers Mohamed Ridza & Co Pillsbury Winthrop Shaw Pittman LLP prietocarrizosa Rizvi, Isa, Afridi & Angell SNR Denton UK LLP Spaczyn´ski, Szczepaniak i Wspólnicy spk CONTENTS ® Gas Regulation 2012 Albania Renata Leka and Besa Velaj (Tauzi) Boga & Associates 3 Contributing editors Argentina Hugo C Martelli Martelli Abogados 8 Florence Ninane, Alexandre Ancel and Liliana Eskenazi Allen & Overy LLP Australia Andrew G Thompson, Stephanie Rowland and Carol Mao Minter Ellison Lawyers 14 Business development managers Austria Thomas Starlinger and Stefan Korab Fiebinger Polak Leon Rechtsanwälte GmbH 21 Alan Lee George Ingledew Belgium David Haverbeke and Wouter Vandorpe Lydian Lawyers 28 Robyn Hetherington Dan White Brazil Giovani Loss Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados 34 Marketing managers Ellie Notley Chile Felipe Bahamondez Bahamondez, Alvarez & Zegers 42 Alice Hazard Colombia Sandra Manrique and Johanna Cajigas Caicedo prietocarrizosa 51 Marketing assistants William Bentley Croatia Miroljub Mac´ešic´, Ivana Manovelo and Miran Mac´ešic´ Mac´ešic´ & Partners 58 Zosia Demkowicz Czech Republic Václav Rovenský and Tomáš Sequens Subscriptions manager Nadine Radcliffe Kocián Šolc Balaštík advokátní kancelárˇ sro 65 Subscriptions@ GettingTheDealThrough.com Denmark Per Hemmer, Johan Weihe and Rania Kassis Bech-Bruun 72 Admin assistant Faroe Islands Per Hemmer, Johan Weihe and Rania Kassis Bech-Bruun 78 Megan Friedman France Florence Ninane, Liliana Eskenazi and Alexandre Ancel Allen & Overy LLP 83 Marketing manager – subscriptions Rachel Nurse Greece Ioannis Vassardanis Alexander Vassardanis & Partners Law Firm 90 subscriptions@ gettingthedealthrough.com Greenland Per Hemmer, Johan Weihe and Rania Kassis Bech-Bruun 97 Assistant editor Adam Myers Ireland Alex McLean, Patrick McGovern and Jennifer Burke Arthur Cox 104 Editorial assistant Lydia Gerges Italy Pietro Cavasola and Matteo Ciminelli CMS Adonnino Ascoli & Cavasola Scamoni 111 Senior production editor Malaysia Mohamed Ridza Abdullah Mohamed Ridza & Co 117 Jonathan Cowie Production editor Mexico Rogelio López-Velarde and Amanda Valdez López Velarde, Heftye y Soria, SC 125 Martin Forrest Nigeria Sina Sipasi and Olasumbo Abolaji Æ´LEX 133 Chief subeditor Jonathan Allen Norway Sondre Dyrland and Per Arvid Schøyen Kluge Advokatfirma DA 139 Subeditor Davet Hyland Pakistan Yousaf Khosa, Zainab Aziz and Amna Nasir Rizvi, Isa, Afridi & Angell 146 Editor-in-chief Poland Piotr Spaczyn´ski and Anna Piotrowska Spaczyn´ski, Szczepaniak i Wspólnicy spk 154 Callum Campbell Portugal Mónica Carneiro Pacheco and Marisa Apolinário Publisher Richard Davey CMS Rui Pena & Arnaut 162 Spain Margarita Hernando Martínez-Arroyo Lupicinio Abogados International Attorneys 168 Gas Regulation 2012 Published by Law Business Research Ltd Tanzania Charles R B Rwechungura and Kamanga W Kapinga CRB Africa Legal 174 87 Lancaster Road London, W11 1QQ, UK Thailand Albert T Chandler, Stefan Chapman and Christopher Kalis Tel: +44 20 7908 1188 Fax: +44 20 7229 6910 Chandler & Thong-ek Law Offices Limited 180 © Law Business Research Ltd 2012 No photocopying: copyright licences Turkey Serra Bas¸og˘lu Gürkaynak and Ali Ozan Karaduman Mehmet Gün & Partners 186 do not apply. United Kingdom David Tennant, Sam Szlezinger and Rebecca Owen-Howes ISSN 1740-7826 SNR Denton UK LLP 192 The information provided in this publication is general and may not apply United States Robert A James, Michael S Hindus and Julie D Hutchings in a specific situation. Legal advice should always be sought before taking any legal Pillsbury Winthrop Shaw Pittman LLP 204 action based on the information provided. This information is not intended to Uzbekistan Babur Karimov and Nodir Yuldashev Grata law firm 212 create, nor does receipt of it constitute, a lawyer–client relationship. The publishers and authors accept no responsibility for Venezuela Miguel Rivero and José Alberto Ramírez Hoet Pelaez Castillo & Duque 219 any acts or omissions contained herein. Although the information provided is accurate as of April 2012, be advised that this is a developing area. Printed and distributed by Encompass Print Solutions Tel: 0844 2480 112 Law Business Research DENMARK Bech-Bruun Denmark Per Hemmer, Johan Weihe and Rania Kassis Bech-Bruun Description of domestic sector Distribution of natural gas in Denmark is carried out by Naturgas Fyn A/S and HMN Naturgas I/S (which are both owned by different 1 Describe the domestic natural gas sector, including the natural regional municipalities), the municipality of Aalborg and a company gas production, liquefied natural gas (LNG) storage, pipeline from the DONG group. transportation, distribution, commodity sales and trading segments There is no production of LNG in Denmark. There are 14 natural and retail sales and usage. gas commodity sales suppliers in the country. Since 2004, all Danish Since the mid-1980s, domestic natural gas production and explora- natural gas customers have been unrestricted as regards their choice tion activity in Denmark and in the other parts of the Danish King- of natural gas supplier. dom (Greenland and the Faroe Islands) has increased dramatically. Denmark has been energy self-sufficient since 1997. In 2010, In December 2010, seven new licences for exploration and exploita- Denmark’s net export of natural gas was 43 per cent of the total tion were granted by the Greenlandic government. With the seven domestic production. new licences the total number is 20. In December 2008, the Faroese government granted three licences under the third Faroese licensing 2 What percentage of the country’s energy needs are met directly round. In Greenland and the Faroe Islands exploration activities have or indirectly with natural gas and LNG? What percentages of the been carried out in 2010 and 2011 and exploration is expected to country’s natural gas needs are met through domestic production and continue in the coming years. This chapter, however, concentrates imported production? solely on the gas regulation of the Danish mainland and the con- tinental shelf belonging to it. See the chapters on the Faroe Islands 36.3 per cent of Denmark’s total energy needs are met directly or and Greenland for details on the other countries of the Danish indirectly by natural gas, all of which was produced in Denmark Kingdom. (figures for 2010). In January 2011, the total reserves of natural gas were calculated There are no LNG facilities in Denmark. at 101 billion cubic metres (bcm) corresponding to 13 years’ production of natural gas if activity continues at the 2010 level. 3 What is the government’s policy for the domestic natural gas sector Domestic natural gas production is located solely offshore in the and which bodies set it? North Sea and comprises a total of 19 fields, of which three fields represent 67.8 per cent of the total domestic production (2010). In The responsibility for the overall strategy and policy for the develop- 2010, a total of 8.1bcm was produced from the fields. The main part ment and regulation of the energy sector is vested in the Ministry of was supplied to the largely state-owned company, Dansk Olie og Climate, Energy and Building. The minister of climate, energy and Naturgas A/S (DONG; any company belonging to its group is also building is authorised to provide the detailed regulation within the referred to in this chapter as DONG). statutory framework and to grant necessary dispensations. In 2010, 86 per cent of all domestic gas production was carried In numerous respects, the minister’s authority to regulate is out by a joint venture, Dansk Underground Consortium (DUC), delegated to the Danish Energy Agency (DEA), which generally consisting of AP Moeller–Maersk (39 per cent ownership interest), assists the minister in respect of administering the law. Shell (46 per cent ownership interest) and Chevron (15 per cent The governmental policy for the natural gas sector is thus ownership interest) pursuant to the sole concession granted to AP exercised by the DEA and is focused on environmental, security of Moeller in 1962. supply, competition and public finance issues. There are two gas pipelines from the North Sea to the onshore processing facilities on the Danish peninsula Jutland. These pipelines Regulation of natural gas production are owned and operated by DONG. A natural gas pipeline owned by DONG and DUC from the North Sea to the Netherlands was 4 What is the ownership and organisational structure for production of completed in 2004. Furthermore, the Danish pipeline networks natural gas (other than LNG)? How does the government derive value connect to the German and Swedish natural gas pipeline networks. from natural gas production? A project for construction of a pipeline connection between the In 1962, the AP Moeller–Maersk Group was granted a sole conces- Norwegian, Swedish and Danish pipeline networks, called the sion for oil and natural gas exploration and production in Denmark Skanled gas pipeline, has been put on hold for the time being. for a 50-year period, expiring in 2012. Exploration and production DONG and the state-owned company Energinet.dk are the only activities are undertaken by DUC. The area covered by the sole con- providers of natural gas storage facilities in Denmark. There are two cession was subsequently reduced to the area in the North Sea where subsoil storage facilities, one in Jutland and one in Sealand.