The European Commission is working on a new decision on natural gas

The European Commission wants to decide to extend the application of the maximum price, which it took as a precautionary measure due to the increase in natural gas prices last year.

The application of the maximum price was scheduled to come into force if the forward gas contract negotiated at the TTF virtual natural gas trading point exceeded 180 euros for 3 business days and if the price per megawatt-hour of liquefied natural gas in Europe rose 35 euros above the world price. markets during the same period.

EMERGENCIES MAY OCCUR

Brussels is considering extending the emergency cap on gas prices, which was introduced in February, amid concerns that conflicts in the Middle East and sabotage of the Baltic gas pipeline could raise prices again this winter.

The European Commission said there had been no signs of adverse effects since the measure came into force and that gas prices were now almost 90 percent lower than last year, according to a presentation to diplomats from the 27 member states of the EU and seen by the Financial Times. .

The cap was introduced after weeks of tense discussions between member states, with Germany and Austria initially opposing it on the grounds that it would disrupt markets and increase supply shortages. However, the commission’s presentation stated that the upper limit does not affect gas imports to the EU.

MAY BE AFFECTED BY SABOTAGE

Despite falling energy prices and EU gas reserves reaching record levels, supplies this winter could be affected by the Israeli-Palestinian war and possible acts of sabotage of gas infrastructure, senior diplomats and EU officials have said.

At the height of the energy crisis, which occurred when gas shipments to Europe were cut off following the war between Russia and Ukraine in 2022, prices rose above 300 euros per MwH ($3,384 per 1,000 cubic meters). , but this did not last long. Member States agreed that the price cap would come into force if prices reached €180 per megawatt hour for three consecutive days.