That European Union has agreed to proceed with a series of emergency measures to deal with the bloc’s energy crisis Germany Finally giving in to pressure from its competitors to pave the way for a temporary price cap on natural gas.
What happened: After intense negotiations, leaders called on the EU executive to call for a “temporary dynamic price corridor for natural gas transactions to immediately limit episodes of excessive gas prices,” according to Bloomberg report said.
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They have called for a temporary EU framework to cap the price of gas in electricity generation, including a cost-benefit analysis, without changing the merit order while preventing gas consumption from rising.
As Europe grapples with an energy crisis Wladimir Putin-LED RussiaDue to ongoing reductions in gas flow, the region is increasingly looking to alternative sources, which include LNG.
That Global X MLP & Energy Infrastructure ETF MLPX has gained over 10% since the beginning of the year while the vanguard Energy Index Fund ETF VDE has increased by over 42% over the same period.
Another proposal included a call for voluntary joint purchasing of gas, with the exception of mandatory demand aggregation for a volume equivalent to 15% of storage filling needs, according to national needs.
The group has also proposed speeding up negotiations with reliable partners to seek mutually beneficial partnerships by exploiting and fully utilizing the Union’s collective market weight EU Energy Platform.
According to the report, President of the European Commission Ursula von der Leyen told a press conference: “We will develop a complementary new index to better reflect the LNG price situation and in the meantime we will put in place a market correction mechanism to limit episodes of excessive gas prices.”
Continue reading: LNG cargo ships queue off Spain’s shores as Europe grapples with Putin’s gas cuts: Here’s what happened
