EU LNG Price Assessment Lacks Data

The EU was unable to launch its LNG price assessment on Friday because of a lack of data from market participants.

• The price assessment is meant as the first step in the EU's plan to launch a new European benchmark price for LNG, which Europe is switching to, to replace Russian pipeline gas.
• Participants could then use the benchmark as the basis for LNG contracts rather than linking to TTF which has been called too volatile by EU diplomats.
• ACER plans to launch a daily European LNG benchmark price by the end of March as part of the plans.
• The EU says a new LNG benchmark price is needed since the Dutch TTF price is guided by gas pipeline supply, which Brussels says no longer represents a European market that includes more LNG.