The FT has learned of doubts in the EU about extending the gas price ceiling.

The European Commission has demanded an extension of the gas price cap introduced in February this year, but diplomats doubt the need for this measure due to the conflict in the Middle East and the "sabotage" of the Balticconnector, the FT has learned.

The European Union is weighing whether to extend the gas price cap introduced in February of this year, set at €180 per MWh (approximately $2,000 per 1,000 cubic meters), amid concerns that the conflict in the Middle East and "sabotage" on the Baltic pipeline could lead to price increases this winter. This was reported by the Financial Times (FT), citing an EC document and diplomatic sources.

The EC document, presented to diplomats from 27 EU member states, states that since the introduction of the gas price cap, "no signs of negative consequences" have been observed: the restrictions have not affected gas imports into EU countries , and gas prices are almost 90% below last year's peak. Therefore, the EC is requesting an extension of the price cap and increased investment in the construction of domestic wind and solar power plants.

At the same time, FT sources clarified that, despite falling energy prices and record storage levels in Europe, supplies this winter could be impacted by the war between Israel and Hamas and potential acts of sabotage in the gas infrastructure. In this regard, they cited the leak in the Balticconnector gas pipeline connecting Estonia and Finland. According to FT sources, the pipeline was "sabotaged" and "it would be good to have insurance" against such events.

According to the newspaper, Germany also called for an extension of the emergency law that allowed EU member states to expedite the issuance of permits for the construction of wind and solar power plants. Furthermore,  Berlin and Paris advocate expanding the EC's state aid rules, which would allow governments to pay larger support payments to consumers facing high energy prices. Belgium, the Netherlands, Denmark, Estonia, and Finland opposed this measure .

In December 2022, EU energy ministers agreed to set a price cap for gas. The ceiling was set at €180 per MWh (approximately $2,000 per 1,000 cubic meters), and the restriction came into effect on February 15. Mandatory conditions for Europe to transition to the price cap regime include gas prices on the Dutch Title Transfer Facility (TTF) exceeding €180 per MWh, with the price being at least €35 higher than the global price of liquefied natural gas.

Russian presidential press secretary Dmitry Peskov called the gas price cap a violation of the market pricing process. On December 22, Russian President Vladimir Putin signed a decree prohibiting Gazprom from purchasing gas from joint ventures with Germany's Wintershall Dea and Austria's OMV at prices higher than the regulated price.

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