• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Reality catching up with EV forecasts
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 14 days US Oil Independence is a myth and will always be a myth
  • 9 days The Federal Reserve and Money...Aspects which are not widely known
  • 14 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 17 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 17 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Sub-Zero Temperatures Set To Boost LNG Demand In Asia

Sub-Zero Temperatures Set To Boost LNG Demand In Asia

A wave of sub-zero temperatures…

Is Europe’s Natural Gas Crisis Finally Over?

Is Europe’s Natural Gas Crisis Finally Over?

Description: European natural gas inventories…

Germany’s Energy Risks Are Fading, For Now

Germany’s Energy Risks Are Fading, For Now

Warm weather and high inventories…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

EU Publishes Emergency Gas Cap Proposal

  • The European Commission outlined steps on Tuesday to battle ongoing high prices for natural gas.
  • The gas price cap part of the proposal will be for the EU’s benchmark gas contract known as the TTF.
  • The European Commission fell short of proposing a hard price cap.

The European Commission (EC) published a proposal on Tuesday that outlined the steps companies could take to group buy natural gas, how natural gas can be shared between EU countries, and a temporary measure to cap the price of natural gas, a source told the Wall Street Journal on Tuesday.

The gas price cap part of the proposal will be for the EU’s benchmark gas contract known as the TTF—but the cap proposed here is not the full price cap that the EU has been discussing and debating for months. Instead, the cap is proposed only as a temporary tool while the EC tries to get on the same page on establishing a permanent benchmark for LNG prices.

According to the proposal, several conditions would need to be met before the price cap would be imposed, the Wall Street Journal pointed out on Tuesday. The first of those conditions would be some assurance that gas flows between EU countries isn’t interrupted. The other condition is that gas consumption within the EU not grow as a result of the price cap. The third and final condition that would trigger a price cap would be that the derivative markets continue to work effectively.

ADVERTISEMENT

The level of the price cap was not divulged.

The EU remains divided on the subject of a natural gas price cap, with Germany and the Netherlands strongly opposing such a measure. Today’s proposal seems to be a compromise between the countries in favor of a price cap and those opposed.

ADVERTISEMENT

But the price cap is still not certain. EU countries would still need to agree on the basic idea of an emergency price cap. Following such an agreement—which Germany’s opposition makes doubtful—the EC will publish the details of how such an emergency price cap would work. Then the EU countries would need to approve those details as well.

The proposal will be discussed this Thursday and by the EU energy ministers next week. 

By Julianne Geiger for Oilprice.com

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News