The Middle East scenario and the explosion of the Balticconnector gas pipeline between Finland and Estonia have caused the European Union to plan to maintain the system for gas price adjustment out of concern for a sharp increase in costs in the winter.
According to diplomatic sources in the EU, the British publication Financial Times reported this. The European Commission has informed leaders of the community's member nations that there are no "indications of any negative effects" from the implementation of a dynamic ceiling on gas prices in February of this year, according to the journal. Senior EU officials and diplomats who talked to the journal claim that Brussels is concerned about a potential winter gas catastrophe, despite the fact that prices had already stabilized and that gas storage facilities around Europe are at record levels of capacity. "We have no idea what will occur this year. We don't know how Israel's challenging situation would effect Middle Eastern energy supply, the insider told the publication, adding that in this case, Europe "will profit from a backup option'.
The European Commission will formally offer recommendations on what steps are still required to ensure energy security in the EU member states in November.
EU countries came to an agreement on a price adjustment mechanism in late 2022 following protracted negotiations. Its activation required the fulfillment of two requirements at once. Within three days, the cost of gas at the TTF center in the Netherlands should approach €180 per MWh (about $2,000 per 1000 cubic meters) and be €35 more expensive than the cost of liquefied natural gas on the global market. The mechanism went into effect on February 15, 2023, but it was subject to termination at any point if there were gas shortages in the EU. /BGNES
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