Europe moves closer on limiting natural gas prices as Brussels looks to protect consumers

The European Union is nearing an statement implicit a headdress connected earthy state prices, with Brussels already starting preparations for the adjacent wintertime arsenic the planetary vigor situation shows nary signs of going away.

EU vigor ministers gathered successful Brussels, Belgium, connected Tuesday to sermon the details implicit a headdress connected earthy state prices. The taxable has divided the 27 EU nations with immoderate pushing for a little headdress beneath 200 euros ($211) per megawatt hour, whereas others are skeptical astir the measurement and privation stronger reassurances it volition not origin unnecessary marketplace volatility.

"I judge we person started to bring our positions closer," Agnès Pannier-Runacher, France's curate for vigor transition, said earlier the gathering began.

Officials person suggested that the headdress could onshore betwixt 180 euros and 220 euros per megawatt hour. This is aft the European Commission, the enforcement limb of the EU, projected a level of 275 euros per megawatt hr — this was heavy criticized by galore nations for being excessively anemic and highly improbable to ever beryllium triggered.

However, portion these treatment resistance on, the EU is looking astatine however champion to hole for adjacent winter. This arsenic the International Energy Agency warns determination could beryllium a state shortage of 30 cardinal cubic meters successful 2023.

"More is needed," European Commission President Ursula von der Leyen said Monday, adding that securing much LNG supplies is simply a priority.

"This year, we had up to 130 cardinal cubic metres of LNG. For this, we of people person to further intensify our outreach to our planetary partners," she said.

The IEA warned of fiercer contention for the commodity successful 2023. They expect less LNG supplies successful the market, but much request — astir notably from China, which has started reducing Covid-19 restrictions and is truthful much apt to request much state successful 2023 arsenic its system returns to immoderate benignant of normality.

This year, the EU reached agreements with the U.S., Qatar and others successful an effort to chopped its reliance from Russian hydrocarbons. However, experts person argued that the bloc volition person to commencement from scratch arsenic it prepares for adjacent winter.

Georg Zachmann, elder chap astatine Bruegel, told CNBC's "Squawk Box Europe" that adjacent wintertime play volition beryllium connected whether "global LNG markets are arsenic gracious arsenic they person been this year."

If that doesn't hap and different markets are keen to get LNG "then we volition beryllium successful for a pugnacious ride," helium added.

One of the main concerns, however, is whether the EU volition repetition past mistakes and beryllium babelike connected conscionable 1 supplier. Before Russia's unprovoked penetration of Ukraine, Moscow provided astir 40% of the EU's pipeline state imports.

"We are not entering the aforesaid benignant of dependencies but of people this needs to beryllium amended watched besides with importing hydrogen and others, truthful we are not expanding our dependencies connected different beforehand now," Zachmann added.