Liquified Natural Gas (LNG)

Introduction

This is an overview of the key content to be found in our Liquified Natural Gas (LNG) subtopic. It briefly explains the nature of this content and provides links to it.

LNG

This subtopic includes the following Practices Notes:

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An introduction to tolling agreements in the LNG sector explains the nature of the tolling model in the context of LNG projects, differentiates the tolling model from other approaches (such as the merchant model) and provides in-depth explanation of the key features of LNG tolling agreements
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‘Conventional’ Oil and Gas—An Introduction provides an introduction to the key elements of the ‘conventional’ oil and gas sector, including licensing and regulation, the upstream, midstream and downstream elements of the sector, corporate transactions, health and safety, decommissioning and LNG, and provides links to related,

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Latest Energy News

Energy weekly highlights—13 November 2025

This week's edition of Energy weekly highlights includes: several updates relating to the ongoing TMO4+ grid connection reforms. First, we cover publication of a joint open letter by the Department for Energy Security and Net Zero (DESNZ) and Ofgem, setting out their expectations of the National Energy System Operator (NESO) and Distribution Network Operators (DNOs) in relation to the ongoing delivery of reforms to achieve the government’s Clean Power by 2030 objective. Alongside this, Ofgem has issued guidance on its plans to make further policy changes to grid connections in respect of demand applications, which have surged since November 2024, and NESO has launched a concurrent Call for Input on demand projects in the current connections queue to help inform this process. We also cover DESNZ confirming the designation of the National Policy Statement (NPS) for nuclear energy generation (EN-7).

DESNZ publishes revised energy National Policy Statements following consultation

The Department for Energy Security and Net Zero (DESNZ) has published its response to consultation and laid revised National Policy Statements for energy infrastructure before Parliament. The updated statements cover EN-1 (overarching energy policy), EN-3 (renewable energy infrastructure) and EN-5 (electricity networks infrastructure), which will come into force following a 21-sitting day parliamentary consideration period. The revisions follow a consultation that received 189 responses and are intended to support delivery of Clean Power by 2030 and net zero targets.

Ofgem approves NESO’s amendments to the Connections Network Design Methodology

Ofgem has approved the National Energy System Operator’s (NESO) proposed amendments to the Connections Network Design Methodology (CNDM), which aim to improve the connections process ahead of the Gate 2 to Whole Queue (G2tWQ) formation exercise under the TMO4+ reform package. These changes include adjustments to advancement checks, import/export treatment for storage systems, reclassification of reactive compensation, and updates to 0 MW onshore wind transmission zones. Ofgem deemed a formal consultation unnecessary due to the limited scope and minor impact of the amendments but emphasised that future changes should generally follow the annual review and consultation process set out in the licence.

Ofgem launches consultation on energy networks ring-fence review

Ofgem has launched a consultation on proposals to strengthen the financial ring-fence framework governing Great Britain’s electricity and gas networks. The review aims to ensure network operators remain financially resilient and independent amid evolving market conditions, such as the energy retail crisis and complex corporate structures exemplified by Thames Water’s financial challenges. Ofgem proposes extending RIIO-3 financial resilience measures to the electricity distribution sector, clarifying and tightening licence conditions, and enhancing reporting and governance to protect consumers. Key proposals include standardised financial resource certification signed by both executive and independent directors, stricter rules on intercompany lending and indebtedness, mandatory multiple investment-grade credit ratings, and clearer definitions of network independence and ultimate control. The consultation closes on 15 January 2026.