The issue of the cap on natural gas is also the big “thorn” that the European leaders will be asked to manage at their meeting in Prague and in Brussels in October.
There is division in Europe regarding whether to impose a cap on the price of natural gas.
As a possible imposition of a ceiling concerns all the member states of the Union, thus constituting the main source of the field of disagreements, two conflicting fronts have been formed between the countries that want it, among which is Greece, but also press the European Commission to express a specific proposal for a ceiling even in the most cautious countries in this regard.
Germany for example calls for further analysis of the implications of such a strategy.
At the same time, countries like the Netherlands is completely negative about the possibility of imposing such a measure.
According to information, taking into account the above, in all probability there will be no specific proposal from the European Commission regarding the specific issue that is the big “thorn” that they will be asked to manage at their meeting in Prague and also in Brussels in October European leaders.
It is noted that for the first time and after many months, the Commission’s updated proposal is presented as a formalized strategy regarding the energy crisis.
The climate that exists at least at the level of European sources on the margin of this is very positive as it seems that a broad majority is forming for at least two of the measures submitted, namely for the forced reduction in electricity consumption this winter and for the ceiling on the prices of excess profits of companies low cost electricity generation.
It should be mentioned that the support for these proposals is done with several asterisks regarding the measure – proposal for a solidarity contribution from the fossil fuel companies.
For example, Poland requests and challenges the legal basis of this measure with the support of Hungary.
In any case, these objections are not considered to constitute an issue, as a whole, to approve these measures on September 30, when the EU Energy Ministers will meet again.
Russia is “tightening” the noose
All this at a time when Moscow is increasingly turning off the natural gas tap in Europe, proceeding with a third reduction in natural gas exports to the EU.
The Russian Deputy Prime Minister Alexander Novak announced on Thursday that Russian gas exports to the European Union they will be reduced by 1/3 this yearby 50 billion cubic meters (bcm), as reported by the Interfax news agency.
Compared to last year, Russian gas exports to the European Union totaled around 150 bcm.
Russian energy supply to Europe decreased significantly this yearamid the Euro-Russian standoff and sweeping Western sanctions against Russia since Russia’s invasion of Ukraine, which Moscow calls a “special military operation,” began on February 24.
The German regulator has warned that there will likely be gas shortages in the winter.
The German government is poised to acquire part of troubled gas supplier VNG, while nationalization of gas importer Uniper is also under consideration.
Hope for energy from Norway
A “crack of optimism” comes in terms of energy from Norway which, judging that the excessively high prices of natural gas are not in its interest, wishes to work with the EU to stabilize the market, although the largest supplier of natural gas of Europe already has the capacity to fill a gap left by Russia.
The European Union is grappling with the impact of soaring gas prices that have driven up inflation, pushed some utilities to the brink and threatened a deep recession.
“It is not in Norway’s interest to have these huge increases in gas pricesNorwegian Prime Minister Jonas Gaar Stere told reporters after meeting with gas companies to discuss ways to reduce the price at which Norway sells to Europe.
Soaring European gas prices, which have risen 250% or more in the past year, have sharply boosted Norway’s export earnings but have wreaked havoc on energy companies caught in the vortex.
Since Russia cut off flows to Europe, Norway has become the region’s top natural gas supplier, with Moscow attributing the shut-off to technical problems caused by Western sanctions. Europe says this is a sham.
Norway is expected to produce about 122 billion cubic meters (bcm) of natural gas this yearaccording to official forecasts in May, an increase of 8% from 2021, as producers increased production as much as possible.
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I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
