Proposed cap for wholesale gas prices
Letter from Europe: Retail gas market intervention safer than wholesale
The EU’s proposals to cap wholesale gas prices could result in unintended consequences
The European Commission has an impossible task: to advance a legislative proposal that seeks to limit upside to gas prices without simultaneously endangering security of supply. Any price cap is market distortionary by nature and entails very significant risks as it can limit Europe’s ability to attract LNG. Additionally, a cap set at or below market prices could curtail the market’s ability to trigger the demand reductions necessary to inject enough gas into storage over the course of next summer in preparation for winter 2023–24. As a result, there are only two ways in which a price cap could be implemented while still limiting its dangers to Europe’s security of supply. One option would b
Also in this section
30 November 2023
Burgeoning middle class and long-term growth from a low base at odds with energy transition efforts
28 November 2023
Countries such as Pakistan will require fossil fuels for a long time to come, requiring a reframing of the narrative around the energy transition
28 November 2023
Rising LNG demand and supply risks are outpacing shipping logistics amid Panama and newbuild challenges
27 November 2023
The major’s acquisition deal could keep oil production in the mature play going for longer
