EU States Negotiating Setting Price Cap on Gas at $210, Reports Suggest
FILE – Pipes at the landfall facilities of the ‘Nord Stream 2’ gas pipline are pictured in Lubmin, northern Germany, Tuesday, Feb. 15, 2022
ROME (Sputnik) – The European Union is trying to negotiate a price cap on natural gas at the level of 200 euros ($212) per megawatt-hour (MWh), though there are still some divisions among member states, Italian press reported, citing sources in the EU. According to the report, a final agreement on the matter could be reached at a meeting of EU energy ministers scheduled to take place on December 19, with around 10 EU countries supporting setting the gas price ceiling at 200 euros. In November, the European Commission proposed a price cap that would kick in if the front-month price on the Dutch gas exchange TTF, Europe’s main natural gas futures market, exceeds 275 euros ($286) per MWh for two weeks and if, at the same time, TTF prices are 58 euros higher than the liquefied natural gas global reference price for 10 consecutive trading days. On November 24, EU energy ministers, despite reaching an agreement on the joint gas procurement mechanism, failed to agree on the Commission’s proposal for the gas price ceiling. Earlier in the week, the ministers at an extraordinary meeting once again failed to agree on a mechanism for limiting gas price hikes; they will consider this issue on Monday.
