Page 4 - GLNG Week 42 2022

GLNG COMMENTARY GLNG

EU summit makes little

progress on a gas price

cap mechanism

COMMENTARY LITTLE progress was made on imposing a gas President Ursula von der Leyen proposed an
price cap and nothing more than a “roadmap” EU-wide gas price cap as a way to contain soar-
to dealing with the key energy issue was reached ing inflation, but the idea met with resistance
during the summit, during a EU summit to from several member states.
discuss solutions to the energy crisis, and the During the discussions on October 20 a final
assembled leaders struck a confrontational agreement was not reached, but a roadmap was
stance on China, which is increasingly seen as adopted and EU ministers agreed to continue to
a Russian ally. work on a compromise solution.
The only breakthrough was that Germany Amongst the ideas on the table to collec-
dropped its opposition to the idea of a gas price tively buy gas to increase the purchasers’ market
cap. Germany is amongst the most exposed to power. “We should consider a price limitation
Russian gas imports in Europe and has been in relation to the TTF in a way that continues
resisting any measures that might hurt its own to secure the supply of gas to Europe and to all
economic interest. member states,” von der Leyen said.
However, with the Nord Stream pipelines During the talks EU leaders eventually
destroyed and with no prospect of repairing backed proposals made by the European Com-
them in the foreseeable future German has mission this week to launch an alternative price
softened its opposition to the plans to limit the benchmark for liquefied natural gas and vol-
crippling gas prices, although there remains little untary joint gas buying, although laws to make
unity in the EU on the best course of action. this happen will need to be negotiated over the
Like the oil price cap scheme that is also in coming weeks.
the works for December, European Commission

P4 www. NEWSBASE .com Week 42 21•October•2022