Install the Sina Finance client to receive the most comprehensive market information at the first time →[download link]
Original title: Forced to save yourself?After Russia cuts supply again, EU reaches “weak version” of natural gas consumption restriction agreement
Source: Wall Street News
On Tuesday, local time, the European Union approved a “weakened” proposal to limit natural gas demand in response to the intensifying natural gas crisis.
The Czech Republic, which holds the rotating EU presidency,TwitterEnergy ministers from EU member states have reached a political agreement to reduce natural gas use by the winter, it was announced. The minister is discussing a plan to enforce the 15% target in emergencies, such as severe supply disruptions in Russia.
According to the draft obtained by the media, the strictness of the new proposal has been loosened from the previous version. The clause that “all EU countries need to reduce the use of natural gas by 15%” has been weakened. Some countries will allow no restrictions on the use of natural gas, or only follow relatively more relaxed requirements. Certain key industries are also exempt from natural gas use restrictions.
Countries that are not connected to other EU gas networks, including Ireland and Malta, will be exempt from the 15% cut in gas use. Countries with relatively ample natural gas reserves (Germany, Italy) and countries that export gas to other EU countries face a lower target for restrictive demand. Key industries such as steelmaking will be exempted from gas restrictions.
The previous version of the gas cut proposal faced huge resistance within the EU, with nearly half of the member states opposed to the proposal. The main point of contention is whether the European Commission should have the power to impose mandatory obligations. Countries including France, Italy, Greece, Spain, Portugal, Hungary, Poland and Denmark have questioned this.
Despite the deal, some EU officials have warned that the rule could be less effective in practice, given the exemptions granted to many countries, and make it difficult for EU countries to store enough gas ahead of winter.
The European gas crisis continued to escalate this week.
this Monday,GazpromGazprom has announced it will cut gas supplies to Germany from the crucial Nord Stream pipeline to around 20% of its maximum capacity due to turbine sanctions, with measures set to take effect on Wednesday. At that time, Russia’s gas transmission will be reduced from the current 40% to 20%.
Affected by the news, European natural gas futures prices jumped 12% on Monday, and prices continued to climb to 190.49 euros/MWh on Tuesday, the highest since March 9, and prices have more than doubled this year.
Massive information, accurate interpretation, all in Sina Finance APP
Responsible editor: Liu Xuanyi