LNG into Europe: your own Dutch trading company

Since the EU plan REPowerEU, liquefied natural gas (LNG) has become a main source of European gas supply. Traders use Dutch reference points. Cargoes are priced and hedged against the TTF, the Dutch virtual trading point for gas. The Gate terminal in Rotterdam is the main LNG terminal for northwestern Europe.

Suppliers from the Gulf, the United States and Africa must choose which company in Europe signs the sale, books regasification capacity and hedges the spread. If your own Dutch BV does this, you deal with European buyers as a European counterparty. You also keep the optimisation margin yourself. We set up that company and help you arrange its VAT, customs and the way profit goes back to your group.

What the Dutch entity does in an LNG chain

The BV sells to European buyers on delivered ex ship (DES) or delivered at terminal (DAT) terms. It books terminal and regasification capacity in its own name. It sells the regasified gas on TTF terms and manages the hedge on European trading venues. One company then handles the whole commercial chain, from the ship's rail to the virtual trading point. The BV trades on European venues, so it must report its transactions under the EU energy market rules (REMIT). It must also follow the market-conduct rules.

One structure for Gulf and Atlantic suppliers

For Qatari, Emirati and Omani portfolios, the Dutch BV can be part of a wider Gulf structure. The same holding can also have the CBAM position for aluminium and fertiliser exports. For US exporters, the BV is the European part of the FOB-to-TTF trade. For African producers, it is the company that European utilities sign contracts with. In every case, the Dutch holding owns the joint venture stakes. Under the participation exemption, the holding receives the project dividends free of Dutch corporate tax and can pass them on to the parent company.

Setting up in the Netherlands

A notary incorporates a Dutch BV by notarial deed, and the BV is registered with the Chamber of Commerce (KvK). You can do this from abroad by power of attorney, with your parent company as shareholder. After registration, the BV gets its VAT and EORI numbers and the licences it needs for its activities. We set up the company and the group structure. Specialised lawyers handle sector permits and admission to regulated markets, and we coordinate this with them in writing. See also EU market entry.

Frequently asked questions

Why does LNG trade through a Dutch entity?

LNG cargoes for northwestern Europe are priced and hedged against the TTF, a Dutch virtual trading point. The Gate terminal in Rotterdam is the main LNG terminal in the region. The company that signs sales, books capacity and manages hedges is therefore usually set up in the Netherlands as well.

What regulatory duties does the trading entity have?

A company that trades gas and LNG positions on European venues must report its transactions under the EU energy market rules (REMIT). It must also follow the market-conduct rules, and the ordinary Dutch company rules apply as well. These duties are built into the company from the start. Specialised lawyers help where needed.

Can the same structure cover other Gulf exports?

Yes. The same Dutch holding can own the CBAM declarant company for aluminium and fertiliser exports and the LNG trading BV, side by side. Under the participation exemption, dividends from these companies to the holding are exempt from Dutch corporate tax.

What does Holdwise do in the process?

We set up the company and the structure: the BV, the holding, the ownership documents and the substance. Specialised parties arrange the admissions to trading venues and the capacity bookings. We coordinate this with them in writing.