Energy Market Highlights:
- The European power prices decreased this week due to stable gas and bearish coal prices. However, the market remains still nervous about the near future.
- According to recent reports, several nations are writing a letter to the EU requesting it look into gas price limitations due to inflationary pressures.
- The EU Commission is contemplating the possibility of redesigning the EU gas market. According to them, there’s a growing discrepancy between TTF, a pipeline benchmark, and LNG gas coming by sea. Therefore, the Commission is considering creating a more representative benchmark soon.
- The European gas storages continue to increase this week, reaching 88% of the full capacity.
- UK Government has announced to cap wholesale gas prices at 75 £/MWh and 211 £/MWh for electricity prices. The market participants are now expecting that the same measures can be implemented in the EU.
- The blasts at Nord Stream 1 and 2 pipelines in the Baltic Sea destroyed the hopes of Russian gas to be delivered to Europe this week. According to Gazprom, the repair can take a few months to even several years.
- The only functioning Russian gas pipelines to Europe are now via Ukraine and Turkey. Recently, Russia has threatened to halt the flows via Ukraine as the conflict intensifies.
To read the prior week’s European Energy Market Update, please follow the link here.
