Gas continues to be expensive. The maintenance work on the Nord Stream keeps the price level. Europe is looking for other gas suppliers and a step has been taken this week. Today, the European Commission announced its intention to intervene in the energy market.
The gas market is starting to stabilize at a high level. The peak on the TTF at €339,20 per MWh turned out to be short-lived. The road down started almost immediately. On Friday, September 2, the rate dropped to €214,66 per MWh. This week the price has risen again, but has fallen just as quickly. When writing on Wednesday afternoon, the TTF stood at €209 per MWh.
The dependence on gas from Russia remains an important factor on the European gas market. State gas company Gazprom has indefinitely suspended the supply of gas via the Nord Stream. According to the Russians, this cannot be otherwise, because the installations have technical defects that must first be repaired. Europe accuses Russia of using this maintenance as an excuse not to supply gas and thus increase pressure on the EU.
Europe is eagerly looking for alternatives to Russian gas. There is positive news to report about this this week. This week, two floating LNG terminals arrived in Eemshaven. Approximately 8 billion cubic meters of gas can be imported annually through these terminals. The floating factories will be put into use immediately. Today (Thursday, September 8) is not only the delivery, but the first ship carrying liquefied gas is also scheduled to arrive.
Intervene
European Commission President Ursula von der Leyen proposed on Wednesday what Europe wants to do about high energy prices. An important part of the measures is aimed at the electricity market, but the committee also wants to intervene in the gas market. Von der Leyen wants an extra profit tax for the oil and gas companies that benefit from the sharply increased prices. The chairman of the committee also wants to make additional liquid assets available to energy companies to cover themselves on the futures market. The positions of the energy companies must be covered and, according to Von der Leyen, this causes problems for the energy companies of the Member States. The committee also wants to introduce a maximum price for gas from Russia. The aim of this is not directly to lower the European gas price, but to hit Putin in the pocket. “We must cut Russia's revenues, which Putin uses to finance his horrific war in Ukraine,” Von der Leyen said. "And now our work in recent months is really paying off. For a long time, 40% of the EU's imported gas came from Russia. Now we are down to 9%." The bill for this will only be paid by European companies and consumers, according to various experts. Moreover, we must also take into account that Putin does not hesitate to completely stop the gas supply, as we have been seeing for a few days now. So the question remains how effective that price limit will be.