Tade Oyewunmi - Regulating Gas Supply to Power Markets (Enery and Envirnomental Law and Policy)

Energy and Environmental Law and Policy Series

VOLUME 34

Editor

General Editor: Professor Kurt Deketelaere, Professor of Law, University of Leuven, Belgium; Honorary Professor of Law, University of Dundee, UK; Honorary Chief of Staff, Flemish Government; Secretary-General, League of European Research Universities (LERU), Belgium. Kurts CV see www.kurtdeketelaere/en/kurt.

Introduction

Environmental protection and energy efficiency/security are important societal challenges. In order to tackle them, policy and legal frameworks are developed at national, regional and global level. Through study and best practices development, the challenges will prove to be solvable.

Contents/Subjects

Environment/Nature/Energy/Climate.

Objective

The aim of this series is to publish works of excellent quality that focus on the study of energy and environmental policy. Through this series the editors:

contribute to the improvement of the quality of energy/environmental law and policy in general and environmental quality and energy efficiency in particular; increase the access to environmental and energy information for academics, nongovernmental organizations, government institutions, and business; and

facilitate cooperation between academic and non-academic communities in the field of energy and environmental law and policy throughout the world.

Readership

Academics and practitioners in environmental and energy matters.

The titles published in this series are listed at the end of this volume.

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To the Alpha and Omega

&

To my kids, Victoria Oluwatoyin and Philip Adeoluwa

About the Author

Dr Tade Oyewunmi specialises in Energy and Natural Resources Law, Competition Law and Regulated Industries, as well as International Investment Law. He teaches International Oil and Gas Transactions and Energy Regulation at the Center for Climate Change, Energy and Environmental Law, Law School, University Eastern Finland (UEF). Between 2013 and 2017, Tade carried out his doctoral research project focusing on the restructuring and regulation of gas-to-power markets in Nigeria and the European Union and was a Visiting Scholar at the University of Houston Law Centre, Houston, TX, USA in 2015-2016. Following his Bachelor of Laws degree at the University of Ibadan, Nigeria and professional qualification as a Barrister and Solicitor in 2004-2005, he commenced his legal advisory and consulting career, particularly, in the areas of commercial transactions, energy law and policy, oil and gas law and dispute resolution. Tades scholarly and research interests border on the application of economic analysis of law, international and comparative law approaches to examining the role of regulation and institutions in commercial, industrial and socioeconomic contexts. He obtained his Master of Laws (Oil and Gas) with Commendation at the University of Aberdeen, UK in 2011 and Doctor of Laws (European Law) with Distinction at the UEF Law School, Finland in 2017.

Table of Contents

CHAPTER 1
Gas Supply to Power Markets: Legal, Regulatory and Institutional Considerations

CHAPTER 2
Principles and Rationales for Competitive and Secure Gas Markets

CHAPTER 3
Gas Market Restructuring and Development in the US and UK

CHAPTER 4
Competitiveness and Security of Supply in the Nigerian Gas-to-Power Industry

CHAPTER 5
The EUs Internal Energy Market and Gas Supply Regulation

CHAPTER 6
Conclusion

ANNEX A
EU and Nigerian Institutions

ANNEX B
Excerpts from a Nigerian Gas Sales Agreement

Preface

Energy law and policy in several developed and emerging economics evolved while addressing questions about whether a state-owned or controlled vertically-integrated corporation with monopoly and in some cases monopsony features will provide a fairer or more secure development in the supply of energy resources compared to a private-sector led liberalised and competition-based framework. The paradigms of economic restructuring and regulation of gas supply markets which developed in the United States (US) in the 1980s1990s and later in the UK are gradually being implemented globally. The consequential competition-based frameworks constitute part of the primary drivers of an increasingly global and commoditised gas supply industry over the past two decades. Recent trends following the US shale gas production boom, Liquefied Natural Gas (LNG) export projects in Australia and significant discoveries in East Africa and other frontier regions portends greater competition for global market share and capital investments in the medium to long-term. Thus, going forward resource-rich countries and import-dependent ones will need to create the enabling regulatory and institutional environment that will promote competitiveness and security of energy supply.

Natural gas is vital energy resource for the twenty-first century economy which is poised to play a major role in the medium to long-term outlook of energy systems of developed, emerging and developing economies. Its supply to power markets for electricity generation through the stages of exploration, production, gathering, processing, transmission and distribution has been a key driver in gas commercialisation over the past two to three decades. It could be in the form of supplying a power generation facility in the electricity market of the same country where the gas was produced or in another importing country.

The doctoral project that led to this book examined the experiences and approaches to the law and regulation of gas-to-power markets in Nigeria and the EU while drawing relevant inferences from the US and UK as pioneers of the transnational paradigms of economic regulation aimed at fostering competitiveness, security and reliability in energy supply, among other objectives. In a similar vein, this book is written to:

(a) Foster a more incisive understanding of the various institutional, regulatory and organisational aspects of the international gas-to-power supply chain amongst concerned academics, students, lawyers, policymakers, private and public stakeholders.

(b) Identify the characteristic and peculiar experiences and approaches to institutional efficiency and effectiveness in regulation within the considered jurisdictions, i.e., US, UK, EU and Nigeria. Such peculiarities and commonalities will provide relevant reference points to several resource-rich and energy-poor countries, as well as the increasing array of import-dependent developed or emerging economies currently implementing gas and energy market reforms.