Storengy UK Ltd's application for a minor facilities exemption for Stublach gas storage phase 2

Publication date
7th March 2014
Closing date
2nd May 2014
Policy area
Status

Storengy is developing the Stublach gas storage facility in Cheshire. Phase 1 of this development has a minor facility exemption (MFE) from negotiated third party access (nTPA) arrangements. Storengy has applied for an MFE for phase 2 of the Stublach gas storage development. We assess whether an MFE should be granted using a range of tests. An MFE can be granted if we think nTPA at the facility isn’t technically or economically necessary for the operation of an efficient gas market. In June 2009, we set out the basis for our approach to MFEs in an open letter.

We determine technical necessity by looking at the availability of gas supply capacity to meet peak demand. We assess economic necessity by considering whether the exemption would adversely affect competition in the market. We look at various indicators of market power to determine the potential impact an exemption would have on competition. We also look at the likely effect on market signals and the economic use of storage capacity.

This consultation sets out our initial view on the application and summarises the analysis that has led us to this view. We are consulting on our minded to position to grant the MFE. Alongside this consultation, we have published Storengy's application.