BRUSSELS—European Union countries are digesting a multitude of proposals from Brussels to curb soaring energy prices ahead of winter, including a planned Russian gas price cap that has raised concerns in some capitals.
European Commission President Ursula von der Leyen proposed measures on Sept. 7 to pull down rocketing gas and power prices ahead of winter.
They include an EU price cap on Russian gas, an EU-wide cut in electricity demand, and a windfall levy on non-gas generators.
EU ministers will discuss the measures on Sept. 9.
Their meeting is not expected to approve any policies, but should make clear which options have strongest support—giving Brussels a steer on what should make it into final proposals.
The plan to cap Russian gas prices has received a mixed response.
The Baltic states—longtime supporters of curbing Russian gas imports—are in favor, alongside countries that do not rely on Moscow for fuel, including Portugal, which mainly imports LNG from Nigeria and the United States.
The country’s environment minister told a national broadcaster late on Sept. 7 the price cap would help curb market speculation, which would also help countries that do not buy Russian gas.
Others have warmed up to the idea after Russia further slashed gas deliveries to the bloc last month, but warned that unity among EU members would be needed to make it happen.
“If there will be unity around this point, we will support this. If, on the other hand, it’s something which is difficult to stomach for some, we’ll have to look at it carefully,” a senior diplomat from one EU country said.
Brussels has not yet specified how it would design the price cap, but certain types of EU laws require approval from all 27 EU countries.
Some central and eastern European states are wary, fearing the measure could cut them off entirely from already dwindling gas supplies.
President Vladimir Putin said on Sept. 7 that Russia will stop supplying gas and oil to Europe if price caps are imposed.
Given the low volumes supplied to Europe—and thus, Moscow’s lower gas revenues—some countries suggested a price cap would not accomplish much and little impact on gas prices within the bloc.
“It wouldn't solve anything,” one EU diplomat said.
Russian gas pipeline deliveries on the three main routes to Europe have fallen by almost 90% since September 2021, Refinitiv data show.
European leaders have accused Moscow of “weaponizing” its energy supplies, while Russia has blamed the cuts on technical problems caused by Western sanctions over its invasion of Ukraine.
Recommended Reading
Rising Phoenix Capital Launches $20MM Mineral Fund
2025-02-05 - Rising Phoenix Capital said the La Plata Peak Income Fund focuses on acquiring producing royalty interests that provide consistent cash flow without drilling risk.
Oil, Gas and M&A: Banks ‘Hungry’ to Put Capital to Work
2025-01-29 - U.S. energy bankers see capital, generalist investors and even an appetite for IPOs returning to the upstream space.
Pearl Again Backs Williston E&P Eagle Mountain Energy Partners
2025-01-16 - Private equity firm Pearl Energy Partners will back Eagle Mountain Energy Partners II, which last year exited its Williston Basin assets in a nearly $300 million deal with TXO Partners.
Hess Midstream Signs Deal to Repurchase $100MM of Class B Units
2025-01-14 - Hess Midstream said the repurchase is expected to result in increased distributable cash flow per Class A share.
Alliance Resource Partners Adds More Mineral Interests in 4Q
2025-02-05 - Alliance Resource Partners closed on $9.6 million in acquisitions in the fourth quarter, adding to a portfolio of nearly 70,000 net royalty acres that are majority centered in the Midland and Delaware basins.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.