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Regulatory Issues with respect
to Competition Law and Third
Party Access
[For Non Engineer]
Sampe L. Purba

25 Sep 2024 Sampe Purba - Regulatory Issues and Competition Rules 2
Competition Law Principles
UK Competition Act 1998:
 Prohibition of Anti-Competitive Agreements
 Abuse of dominant Position
 Regulatory Oversight to ensure compliance,
investigate and penalize anti-competitive behaviour
Exemption allows for certain things in order to
improve production or distribution, promote technical
or economic progress while allowing consumers a fair
share of the resulting benefit

Competition Law in EU market
 Preventing market dominance
Regulating Mergers and Acquisitions
Prohibiting anti-competitive agreements
Ensuring access to infrastructure
State Aid Control
Promoting market integration and liberalization
 EC is the main body responsible for enforcing competition law
in gas sector

Diversion of LNG
• Seller
 market flexibility
Profit optimization
Risk mitigation
 Buyer
Cost efficiency
Market access
Risk diversification

Restriction
• Usage restriction
• Resale restriction (original market)
• Resale restriction (alternative market)
Geopolitical tensions related
War in Ukraine March 2022 :
• In April 2022 the European Commission hosted the first meeting of the EU Energy Platform, a
vehicle for the common purchase of gas and LNG. This was described as a voluntary
coordination mechanism which would include provisions for demand pooling, coordinated
infrastructure use, and preparation for joint purchases, acting at the European Union level
rather than at the Member State level
•  such kind of things may apply in other agreement

Third Party Access
The objective : Foster Competition to improve
efficiency
To develop emerging markets
To impact market players – Conflicting interests
among system operator, existing shippers, and
new entrants
Strategic consideration to allow flexibility in
managing portfolio

Justification Third Party Access
Avoid Proliferation
 to circumvent from inefficiency – over
capacity less utilization
Market exclusion due to regulation,
capital etc

The Paradox of TPA
TPA and monopolies  As the existing
infrastructures become more powerful, it
can slip to monopoly-like mindset
Preventing and Promoting Investment
 tariff vs equity access

TPA rights in infrastructures :
•Gas Pipelines
•Gas Processing Facilities
•Offshore Gas Storage Facilities
•Onshore Gas Storage Facilities
•LNG facilities

Negotiated Access and Regulated Access  EC law
Negotiated access.
• Pipeline owners and eligible shippers will negotiate access to
infrastructure according to good faith negotiations and voluntary
commercial agreements based on published conditions of use
(negotiated third party access (nTPA)).
Regulated access.
• Pipeline owners and eligible shippers will negotiate access to
the pipeline according to a right of access based upon
published tariffs and other conditions of use (regulated third
party access (rTPA)).

Third Energy Package EC 2019
Objective:
• to liberalise and to integrate the originally separate gas markets of the
individual EU Member States that were dominated by national or regional
vertically integrated monopolists
Elements:
• Unbundling Concept : separation of gas transportation infrastructure from
the activities of gas production and gas supply
• Tariff regulation : to prevent a gas transportation infrastructure owner
holding a monopoly position from foreclosing competitors by charging
artificially high gas transportation costs
• Third party access (TPA) :applied to gas transportation infrastructure,
applicable to all eligible pipeline users and to be applied objectively and
without discrimination between pipeline users

References
•Peter Roberts https://www.amazon.com/Gas-LNG
-Sales-Transportation-Agreements/dp/041411129
X
•The UK Competition Act 1998
•Energy Economics, Concepts, Issues, Markets
and Governance, S.C Bhattaacharyya, 2011
•Sampe Purba – www.slideshare.com

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