Gas regulation—Denmark—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Gas regulation—Denmark—Q&A guide
  • 1. Describe the domestic natural gas sector, including the natural gas production, liquefied natural gas (LNG) storage, pipeline transportation, distribution, commodity sales and trading segments and retail sales and usage.
  • 2. What percentage of the country’s energy needs is met directly or indirectly with natural gas and LNG? What percentage of the country’s natural gas needs is met through domestic production and imported production?
  • 3. What is the government’s policy for the domestic natural gas sector and which bodies set it?
  • 4. Which authorities make regulatory policies and decisions in respect of the production, transmission, distribution and supply of natural gas?
  • 5. What is the ownership and organisational structure for production of natural gas (other than LNG)? How does the government derive value from natural gas production?
  • 6. Describe the statutory and regulatory framework and any relevant authorisations applicable to natural gas exploration and production.
  • 7. Are there different rules for, or any restrictions on, unconventional natural gas production (including fracking)?
  • 8. Are participants required to provide security or any guarantees to be issued with a licence to explore for or to store gas?
  • 9. Describe in general the ownership of natural gas pipeline transportation, and storage infrastructure.
  • More...

Gas regulation—Denmark—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to gas regulation in Denmark published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Bech-Bruun—Per Hemmer; Johan Weihe; Rania Kassis

1. Describe the domestic natural gas sector, including the natural gas production, liquefied natural gas (LNG) storage, pipeline transportation, distribution, commodity sales and trading segments and retail sales and usage.

Since the mid-1980s, domestic natural gas production and explora­tion activity in Denmark and in the other parts of the Danish Kingdom (Greenland and the Faroe Islands) has increased dramatically. In Greenland and the Faroe Islands, exploration activities have been carried out since 2010, and exploration is expected to continue in future years. This chapter, however, concentrates solely on the gas regulation of the Danish mainland and the continental shelf belonging to it. See the chapters on the Faroe Islands and Greenland for details on the other countries of the Danish Kingdom.

In January 2020, the total reserves of natural gas were calculated at 77 billion cubic metres (bcm). Denmark is expected to continue to be a net exporter of natural gas until after 2035 except for the years 2020–2023, during which the rebuilding of the Tyra Field will take place. The expected time for rebuilding the Tyra Field has increased by two years owing to the covid-19 pandemic.

Domestic

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