Natural gas prices have fallen as the market awaits details of the European Union’s plan to resolve an unprecedented energy crisis that threatens demand for the fuel. Ttf futures maturing in October fell 5.6% to 195.5 euros per megawatt hour on the Amsterdam market.
On Friday, EU energy ministers called for urgent measures to contain costs and provide liquidity to the market.
Commission President Ursula von der Leyen has called for “emergency intervention” and is expected to define measures this week. Member countries, all with different energy needs, are divided on how to implement gas price caps. The idea of a larger price cap – on all gas imports, not just shipments from Russia – was debated, but ministers agreed on the need to work further on this measure.
Norway, a major gas supplier to Europe, is skeptical about introducing a price cap.
European storage sites are 84% full, slightly above the five-year average.
European LNG imports are expected to rise 16% from last winter, thanks to new projects in the United States and Mozambique, according to Goldman Sachs. However, a cold winter in Asia and an economic recovery in China could increase competition for cargoes from this region.