NATURAL GAS

Policy and Regulation

Many countries with mature or developing natural gas markets are reviewing their energy policies in order to respond to increasing energy demand and security of supply issues. Over recent years, emphases of natural gas policies objectives have been to improve access to natural gas supplies and to develop infrastructure. The role of regulation is essential in addressing these objectives and to the long-term prospects and viability of the gas industry.

Many countries, including those that have commenced gas industry reform only recently, are seeking to find equilibrium between the roles played by the government/regulator and that played by the market. If natural gas policy and regulation fail to provide the necessary incentives, the capital investments needed for long-term development might not be forthcoming. Natural gas polices in many countries also strive to achieve smooth market operation in order to promote flexibility of supply.

The goal in defining a gas policy and regulatory framework is to seek a market environment that ensures security of supply and provides public service, while simulataneously addressing the social issues related to affordability. Remaining challenges in many countries include consistently and transparently enforcing regulations, coordinating tasks between government agencies, ensuring expansion of gas transport services and domestic production, and promotion of fair competition in the sector to the extent that it will improve resource allocation and sector efficiency.

Nexant Services

Nexant's gas practice is intimately familiar with the issues surrounding natural gas policy and regulatory developments. Members of our team have worked extensively on a first-hand basis with national policymakers and regulators, particularly in countries with rapidly evolving gas markets, to promote optimal sector development. Our services cover the following key areas:

  • Regional/national market structure and competitive environment
  • Regional/national gas supply trends
  • Assessments of linkages between natural gas policy and policy mechanisms (legislation, regulation, promotion of gas, fiscal, and financing)
  • Regulatory framework definition
  • Gas sales agreements
  • Access code definitions and negotiations for national and cross-border pipelines

Selected Project Experience

  • Gas regulatory and restructuring assistance—Romania
  • National oil and gas policy—Nigeria
  • Natural gas policy and regulatory framework development—Macau SAR
  • Regulatory advice and energy sector restructuring assistance—Poland
  • Gas office institutional strengthening—Philipines
  • Cross-border regulatory framework for the West Africa gas pipeline
  

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