Free Trial

EC Eyes to Extend European Gas Price Cap


The European Commission is weighing whether to extend the emergency gas price cap amid fears that the conflict in the Middle East and sabotage of the Balticconnector pipeline could push prices higher again this winter according to a presentation given to diplomats from the EU’s 27 member states and seen by the Financial Times.

  • The European energy ministers in December agreed to set a price cap on natural gas prices, or gas market correction mechanism, at €180/MWh that came into force on 1 February for the duration of one year. The cap will come into effect when prices exceed the ceiling on three consecutive trading days and the difference between TTF gas prices and global LNG benchmarks is greater than €35/MWh.
  • “We don’t know what will happen this year. We have the situation in Israel and we don’t know how that will affect imports from the Middle East,” one EU diplomat said.
  • They added that a gas pipeline in the Baltic Sea that was sabotaged earlier this month was another concern and “it would be good to have an insurance policy”.
  • The Commission is due to present a proposal in November, confirming whether to extend the current gas price cap, while also looking at other emergency energy measures.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.