EU's plan for high gas prices
EU TTF price cap proposals stoke alarm
The bloc’s plans are intended to shield consumers from high gas prices but have been criticised as unlikely to benefit end-users and for posing significant additional risks
Market participants have warned of unintended consequences for risk management and security of supply stemming from EU proposals to cap front-month TTF gas prices at €275/MWh ($290/MWh). The plans have also faced stiff criticism from some politicians, warning the suggested price ceiling is too high to protect end-users. The EU has proposed the “gas market correction mechanism” as a temporary measure, but the bloc’s energy ministers have yet to come to an agreement. “Many [ministers] supported the objectives of the proposals,” an energy council statement confirms, “while indicating that the conditions for activating the mechanism were too strict”—specifically that a €275/MWh ceiling is too hi
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
