gas europe winter price price cap

With winter on the horizon, the gas crisis, which exploded due to the war in Ukraine, is worsening across Europe. And now the EU is desperately trying to hide. The time is over for divisions, so the President of the Commission, Ursula von der Leyen, announces: “We are ready to discuss a cap on the price of gas to produce electricity.”

Von der Leyen addressed the European Parliament in plenary on October 5 to discuss the latest developments in the war in Ukraine. “Putin used energy as a weapon, causing economic and social hardship. The measures we have put in place provide us with a first buffer of protection. We will now take a step forward to deal with rising energy costs,” Von der Leyen said.

Ursula von der Leyen. Photo Ansa / Epa Julien Warnand

The Ttf – Title Transfer Facility, the virtual natural gas exchange point based in the Netherlands – “our main price reference, is no longer representative of our market. Which today includes more LNG (liquefied natural gas, editor’s note). Capping gas prices for electricity generation is “a temporary solution until a new EU price index is developed”.

Consumption in Europe reduced by 10%

The Commission has started to work on this subject. “The President of the Commission then took stock of the issue of consumption. “We have reduced our gas consumption by around 10%,” he said. “Gas supply from the Russian pipeline fell 40% to 7.5% today. We compensated for this reduction with an increase in imports of LNG (liquefied natural gas) and pipelines, mainly from our reliable suppliers such as the United States and Norway. Gas storage in the EU is now at 90%. This is 15% more than on the same day last year, ”he said.

Gazprom has taken over Italy’s supplies blocked in Austria. Photo Ansa / Epa Anatoly Maltsev

Italy, Russian gas is back

Meanwhile, today October 5, the gas flows that the Russian Gazprom sends to Italy and which had stopped in Austria have resumed. The resumption of supplies took place because Eni resolved an issue regarding the constraints “of new legislation introduced by the Austrian regulatory authorities”. Eni announces it. Supplies were interrupted on October 1 due to “Gazprom’s declared impossibility of transporting gas through Austria”.

Photo Ansa / Epa Hannibal Hanschke

After four days, Gazprom and Italian buyers of Russian gas reached an agreement on supplies and the transport of Russian gas through Austrian territory resumed. “Gazprom and Italian buyers succeeded in reaching an agreement on the format of cooperation between the regulatory changes in Austria at the end of September. The Austrian operator has communicated its willingness to confirm the transport appointments of Gazprom Export, which allows the resumption of deliveries of Russian gas through Austrian territory,” reads a note from Gazprom quoted by Tass.