EMRA Issued Regulations for the Natural Gas Market that Will be Valid During the State of Emergency
Pursuant to the Energy Market Regulatory Board (“Board”) Decision No. 11644, published by the Energy Market Regulatory Authority (“EMRA”) in the Official Gazette No. 32100 on February 10, 2023, certain regulations have been introduced regarding the obligation of Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) license holders to meet the demands of transmission and distribution companies in emergency and force majeure situations.
Article 4(4)(g) of Natural Gas Market Law No. 4646 (“Law”) stipulated that, in the presence of emergency or force majeure conditions, transmission and distribution networks may be supplied with LNG or CNG, and that license holders engaging in LNG/CNG activities are obliged to fulfill the requests of transmission and distribution companies in such circumstances. The authority to determine the relevant procedures and principles has been vested in the Board.
In this context, with the Decision No. 11644 taken by the Board, upon the request of the distribution companies operating in the provinces of Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye and Şanlıurfa, where a State of Emergency (SoE) was declared due to the earthquakes centred in Kahramanmaraş, and which provide the necessary standards, comply with the safety measures and assume the control responsibility, it has been decided that the issues that are not regulated in the legislation can be fulfilled by providing the necessary coordination with EMRA regarding the service purchases to be made from the licensees operating in LNG and CNG activities, with priority given to the facilities that have vital critical importance.
The effective date of the aforementioned Board Decision published in the Official Gazette on 10 February 2023 has been set as 06/02/2023 and it is regulated that the relevant decision will be valid until the end of the SoE period.
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LBF Partners Law Firm
Article 4(4)(g) of Natural Gas Market Law No. 4646 (“Law”) stipulated that, in the presence of emergency or force majeure conditions, transmission and distribution networks may be supplied with LNG or CNG, and that license holders engaging in LNG/CNG activities are obliged to fulfill the requests of transmission and distribution companies in such circumstances. The authority to determine the relevant procedures and principles has been vested in the Board.
In this context, with the Decision No. 11644 taken by the Board, upon the request of the distribution companies operating in the provinces of Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye and Şanlıurfa, where a State of Emergency (SoE) was declared due to the earthquakes centred in Kahramanmaraş, and which provide the necessary standards, comply with the safety measures and assume the control responsibility, it has been decided that the issues that are not regulated in the legislation can be fulfilled by providing the necessary coordination with EMRA regarding the service purchases to be made from the licensees operating in LNG and CNG activities, with priority given to the facilities that have vital critical importance.
The effective date of the aforementioned Board Decision published in the Official Gazette on 10 February 2023 has been set as 06/02/2023 and it is regulated that the relevant decision will be valid until the end of the SoE period.
For further information and support, please contact us at info@lbfpartners.com.
LBF Partners Law Firm