EU: final discussions to set a cap on gas prices

The European Energy Ministers have begun final discussions in Brussels to finalize a cap on the wholesale price of gas.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The European Energy Ministers have begun final discussions in Brussels to finalize a cap on the wholesale price of gas, indicating a rapprochement of positions after a month of bitter discussions.

Faced with high energy prices at the beginning of winter, “households and businesses are waiting for a decision, I see no reason not to find an agreement today” (Monday), assured on his arrival the Czech minister Jozef Sikela, whose country holds the rotating presidency of the EU.

Anxious to display a united front, the 27 Member States initially considered it preferable to seek unanimity, even if, on a legal basis, the text can be adopted by a qualified majority of States. From now on, this is no longer excluded.

“I am aiming for an agreement by tonight, one way to achieve this is to use qualified majority voting,” Sikela acknowledged.

“This would obviously be an undesirable outcome. If this is the case, we will have to live with it,” lamented German Minister Robert Habeck, calling for “no losers.

The ministers of the EU-27 had already agreed on December 13 on some of the details of the mechanism, which would apply to futures contracts on the gas markets, but they still need to agree on the price at which the cap will be triggered.

While the positions of the States ranged between 160 and 220 euros/MWh, the Czech Presidency proposed a compromise of 188 euros/MWH, said the French Minister for Energy Transition Agnès Pannier-Runacher, noting that Paris defended a range of 200 to 260 euros.

“There are three objectives: to have a gas price that is acceptable for the proper functioning of the economy, while ensuring that we do not block our supplies and ensure the stability of financial markets,” she recalled.

“188 euros / MWh would send a strong signal to the markets,” said his Greek counterpart Konstantinos Skrekas.

The Commission had initially proposed to cap monthly contracts on the TTF reference market if they exceeded 275 euros/MWh for two weeks, among other conditions, factors that were never met, even at the height of the price surge last August.

Several countries (Spain, Poland, Greece, Italy, etc.) had called for a clear relaxation of the activation conditions.

On the contrary, other states (Germany, the Netherlands, Austria…) were reluctant to intervene and demanded drastic “safeguards” to prevent a ceiling from threatening European supplies.

The risk is that liquefied natural gas (LNG) suppliers will move away from Europe to Asian customers who pay more attractive prices for their gas.

“On paper, this risk does not exist,” said Ms. Pannier-Runacher, as the EU-27 have agreed to activate the cap only when the price is significantly higher than the average international LNG price and to provide for automatic deactivation in case of unforeseen disruptions.

Rising terminal capacity and sustained global demand, notably from China and Europe, are driving U.S. ethane exports despite new regulatory uncertainties.
The United States has called on Japan to stop importing Russian gas, amid rising tensions over conflicting economic interests between allies in response to the indirect financing of the war in Ukraine.
Australian group Santos lowers its annual production forecast after an unplanned shutdown at the Barossa project and delayed recovery in the Cooper Basin.
VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.
Rockpoint Gas Storage finalised its initial public offering in Canada with an upsized offer of 32 million shares for gross proceeds of C$704mn ($512mn), marking a new step in Brookfield’s partial divestment strategy.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.