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EU Will Discuss Lower Gas Price Cap On Monday

NATURAL GAS

European Union member states are considering a proposal to cap gas prices at lower levels than previously suggested at the EU energy minister’s meeting on Monday, according to a draft seen by Reuters.

  • The Czech government proposed lowering the gas price cap to €188/MWh, compared with the previous proposal at €275/MWh.
  • The proposal would trigger a cap if TTF gas front-month prices exceed €188/MWh for three consecutive days. Once triggered, the cap would prevent trades done on the TTF front-month contracts at a price more than €35/MWh above a reference price comprised of existing LNG price assessments.
  • Belgium, Greece, Italy and Poland have demanded a price cap below €200/MWh.
  • The EU energy ministers failed to agree on the proposed price cap during the minister’s meeting scheduled for 13 Dec. The next ministers meeting will be on Monday.

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