On the proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast)
A-9-2023-0032
Committee on Industry, Research and Energy · Rapporteur: Jerzy Buzek
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
Parliament's amended version of the Commission proposal for a regulation on the internal markets for renewable gas, natural gas and hydrogen (recast) sets rules for access to gas and hydrogen networks, storage, LNG and hydrogen terminals.¶¶¶ It requires Member States to diversify gas supplies and ensure imports of natural gas, renewable gas and low-carbon gas do not originate from the Russian Federation.¶ It sets a target of at least 35 bcm of sustainable biomethane produced and injected into the natural gas system by 31 December 2030, and requires Member States to establish regional maps and national strategies for biogas and biomethane.¶¶¶ It creates a joint EU organisation of gas transmission system operators and hydrogen network operators (ENTSOG&H) and requires hydrogen networks to be organised as entry-exit systems from 1 January 2031.¶¶ It amends Regulation (EU) 2017/1938 to add solidarity measures, joint procurement of gas, cybersecurity rules and an intra-day volatility management mechanism for energy-related commodity derivatives.¶¶¶
Committee position. The Committee on Industry, Research and Energy adopts Parliament's position at first reading with amendments to the Commission proposal, taking into account the recommendations of the Consultative Working Party of the legal services. It calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal.¶¶
Key points
- Sets non-discriminatory rules for access to natural gas and hydrogen systems, encourages preventive measures reducing fossil gas demand, and facilitates a transparent wholesale market with high security of supply.¶¶¶
- Requires Member States to diversify gas supplies and ensure imports of natural gas, renewable gas and low-carbon gas through pipelines and LNG terminals do not originate from the Russian Federation.¶
- Requires Member States to ensure collectively that at least 35 bcm of sustainable biomethane is produced and injected into the natural gas system by 31 December 2030.¶
- Requires Member States to establish regional maps identifying areas with highest potential for sustainable biogas and biomethane production, and national strategies on their production and use by 2030 and 2050.¶¶
- Requires transmission and distribution system operators to ensure firm capacity for renewable gas and low-carbon gas production facilities, including reverse flow from distribution to transmission networks.¶¶
- Requires hydrogen network operators to offer services non-discriminatorily, sets maximum capacity contract durations of 20 years for existing infrastructure and 15 years for new infrastructure, and requires entry-exit systems from 1 January 2031.¶¶¶
- Creates the ENTSOG&H, requires it to publish a non-binding Union-wide ten-year network development plan for gas and hydrogen every two years, and to develop network codes.¶¶¶
- Requires transmission system operators to accept gas flows with hydrogen content up to 3% by volume at interconnection points between Member States, subject to a procedure for recognising restrictions.¶¶¶
- Allows Member States to permit hydrogen network operators to spread network development costs over time through an inter-temporal cost allocation mechanism, subject to regulatory approval and a State guarantee.¶
- Amends Regulation (EU) 2017/1938 to introduce solidarity measures, including default rules for compensation and delivery deadlines, and to extend solidarity obligations to Member States with LNG facilities.¶¶¶
- Requires trading venues to set up an intra-day volatility management mechanism for energy-related commodity derivatives, with price boundaries based on a reference price.¶¶
- Requires natural gas undertakings or authorities intending to enter negotiations for gas purchases above 5 TWh/year to inform the Commission before concluding contracts or memoranda of understanding.¶¶
Who is affected
- Member States, which must diversify gas supplies, ensure no imports from Russia, and meet the biomethane target.¶¶
- Transmission system operators, hydrogen network operators, storage and LNG operators, which must offer non-discriminatory access and comply with transparency and capacity rules.¶¶¶
- Renewable gas and low-carbon gas producers, who gain rights to firm capacity and access to the virtual trading point.¶¶
- Trading venues, which must set up intra-day volatility management mechanisms for energy-related commodity derivatives.¶
- Natural gas undertakings and large consumers, which must inform the Commission of planned gas purchases above 5 TWh/year.¶
Figures and deadlines
- At least 35 bcm of sustainable biomethane to be produced and injected into the natural gas system by 31 December 2030.¶
- Maximum duration of hydrogen capacity contracts: 20 years for infrastructure completed by the date of entry into force, 15 years for infrastructure completed after that date.¶
- Hydrogen networks to be organised as entry-exit systems as of 1 January 2031.¶
- Transmission system operators to accept gas flows with hydrogen content of up to 3% by volume at interconnection points between Member States.¶
- Natural gas undertakings or authorities to inform the Commission of planned gas purchases above 5 TWh/year at least six weeks before concluding a contract.¶¶
- Solidarity requests to be submitted at least 72 hours before delivery for LNG and at least 24 hours before delivery for pipeline gas; response within 12 hours.¶
- Compensation for indirect costs in solidarity measures shall not exceed 100% of the price for gas.¶
- Commission may impose fines not exceeding 1% of total turnover in the preceding business year for supplying incorrect, incomplete or misleading information.¶
Legal basis: Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union.¶