Gas Act 1986

Changes over time for: Section 19D

Version Superseded: 31/12/2020

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Point in time view as at 25/04/2013. This version of this provision has been superseded.

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Gas Act 1986, Section 19D is up to date with all changes known to be in force on or before 25 July 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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[F119DAcquisition of rights to use LNG facilities.E+W+S

(1)[F2Subject to subsection (2A), the owner of an [F3LNG import or export facility]] to which this section applies (a “relevant facility”)—

(a)shall publish [F4prior to their entry into force] the main commercial conditions relating to the grant to another person of a right to have [F5gas or] [F4liquid gas] treated in the facility on that person’s behalf; and

(b)shall publish any changes to the published conditions as soon as they become effective.

F6(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7(2A)The cost or the method of determining the cost of acquiring the right to have [F5gas or] liquid gas treated in a relevant facility and any changes thereto must be approved by the Authority prior to their publication; and such approval may be given on condition that certain modifications are made to the cost or methodology.

(2B)Before the owner of a relevant facility seeks approval under subsection (2A) he must carry out such consultation as the Authority may require.]

(3)The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have [F5gas or] [F8liquid gas] treated in the facility.

(4)Any person who seeks a right to have [F5gas or] [F9liquid gas] treated on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5)An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6)Such a notice shall, in particular, specify—

F10(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)the kind of [F5gas or] [F11liquid gas] to be treated (which must be of, or similar to, the kind which the facility is designed to treat); and

(c)the quantities of [F5gas or] [F12liquid gas] to be treated.

[F13(7)The owner shall notify the applicant of his decision giving reasons for any refusal.]

(8)If the owner [F14refuses the application] , the applicant may apply to the Director for directions under subsection (11) which would secure to the applicant the right specified in the notice under subsection (5).

F15(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)[F16Where a person applies to the Authority under subsection (8), the Authority shall—]

[F17(a)decide whether to give directions under subsection (11), to consider the application further or to reject the application]

(b)give notice of his decision to the applicant; and

[F18(c)in the case of a decision that the application is to be considered further—

(i)give to the owner of the facility, the Health and Safety Executive and any person who has a right to have [F5gas or] liquid gas treated in the facility notice that the application is to be so considered and an opportunity of being heard about the matter; and

(ii)after so considering the matter, decide whether to give directions under subsection (11) or to reject the application and give notice of its decision to the applicant.]

(11)Where, after considering an application under subsection (8), the Director is satisfied that the giving of directions under this subsection would not prejudice the efficient operation of the facility, or the treatment in the facility of—

(a)the quantities of [F5gas or] [F19liquid gas] which the owner of the facility requires or may reasonably be expected to require to be treated in the facility; and

(b)the quantities of [F5gas or] [F19liquid gas] which any person who has a right to have [F5gas or] [F19liquid gas] treated in the facility is entitled to require to be so treated in the exercise of that right;

the Director may give such directions to the owner of the facility [F20; but this is subject to subsections (11A) and (11B)] .

[F21(11A)When considering whether the giving of directions under subsection (11) in respect of an LNG import or export facility would be prejudicial as mentioned in that subsection, the Authority must disregard any difficulties by virtue of which the owner of the facility may or must apply for an exemption under section 19DZA with respect to the facility.

(11B)The Authority must not give directions under subsection (11) in respect of an LNG import or export facility if—

(a)such directions would prevent the owner from carrying out any public service obligation, within the meaning of paragraph (2) of Article 3 of the Gas Directive, which is imposed on the owner pursuant to that paragraph; or

(b)an exemption is in force with respect to the facility under section 19DZA (regardless of whether that exemption was given before or after the application to the Authority under subsection (8) was made).]

(12)Directions under subsection (11) may—

(a)specify the terms on which the Director considers the owner of the facility should enter into an agreement with the applicant for all or any of the following purposes—

(i)for securing to the applicant the right to have treated in the facility, F22... and in the quantities so specified or determined by or under the directions, [F5gas or] [F23liquid gas] which is of a kind so specified;

(ii)for securing that the exercise of that right is not prevented or impeded;

(iii)for regulating the charges which may be made for the treatment of [F5gas or] [F24liquid gas] by virtue of that right;

(iv)for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient F25...;

(b)specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c)require the owner, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.]

Textual Amendments

F1Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

F2Words in s. 19D(1) substituted (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(a)

F3Words in s. 19D(1) substituted (10.11.2011) by The Electricity and Gas (Internal Markets) Regulations 2011 (S.I. 2011/2704), regs. 1(1), 13(2)

F4Words in s. 19D(1)(a) substituted (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(b)

F5Words in s. 19D inserted (10.11.2011) by The Electricity and Gas (Internal Markets) Regulations 2011 (S.I. 2011/2704), regs. 1(1), 13(3)

F6S. 19D(2) ceased to have effect (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(c)

F7S. 19D(2A)(2B) inserted (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(d)

F8Words in s. 19D(3) substituted (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(e)

F9Words in s. 19D(4) substituted (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(e)

F10S. 19D(6)(a) ceased to have effect (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(f)

F11Words in s. 19D(6)(b) substituted (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(g)