11/24/2022 | Press release | Distributed by Public on 11/24/2022 11:11
EU countries are working in unity to fend off the impact of Russia's war on the energy market and reduce energy dependencies.
However, as prices continue to fluctuate, EU countries have agreed on the content of new measures which take them a step closer to a more integrated EU energy market for gas.
Russia is no longer a reliable gas supplier and EU countries need to secure gas supply from other sources for this winter and beyond.
Joint purchasing at EU level will help EU countries buy gas at lower prices by pooling demand and avoiding competing with each other.
Solidarity among EU countries is the best insurance against supply shortages. The new rules advance solidarity arrangements between member states and ensure that gas can flow where it is needed.
New rules to apply by default to countries with no solidarity arrangement:
Gas prices remain too volatile on the markets. New measures limit price fluctuations and help keep prices down.
The TTF is not suited for benchmarking LNG prices (as it was developed for pipeline gas). A new benchmark will ensure that the price of LNG is no longer dependent on the TTF and that it better reflects the market reality.
Imports of LNG represent a large and growing part of EU gas imports. Imports from the United States have grown from 0.65 billion cubic meters in January 2021 to 4.63 bcm in August 2022.
What is the TTF? - The title transfer facility is a virtual gas trading platform widely used for gas transactions in the EU, which serves as the main benchmark to define the price of gas.
Groundwork will be done in the next months so that the new index will be available to the market by 31 March 2023.
In addition, a new mechanism is introduced to limit intra-day volatility of gas prices in the TTF.