It is reported that on Tuesday, , the European Commission officially launched a new proposal, requiring a "price limit" on Russian natural gas. European Commission will set the upper limit of imported natural gas benchmark price at 275 euros/megawatt-hour in the coming year, and the document has been issued to each member state. As long as these countries agree, the agreement will come into effect at the beginning of next year, which also means that natural gas procurement in European countries cannot exceed this price in 2023. Now, although this price threshold is much higher than the current level of about 120 euros per megawatt-hour, there are other "abbreviations" in EU .
news mentioned that the current low natural gas price in Europe is mainly because they have been "struggling" for several months. In addition, Russia did not ban natural gas in the first half of the year, gas storage equipment in various countries has reached its limit, and demand has naturally decreased. But once natural gas is used up next year, these countries will be "bottled" again, and gas prices will once again exceed 300 euros/megawatt-hour. The EU's "price limit order" concept is also very good: as long as a benchmark is set, countries do not have to snatch the price of natural gas, and natural gas prices will be within a controllable range; long before the order was issued, many people thought it was "absolutely unfeasible."
As expected, only two days after the European Commission's "proposal" on the 24th, the Italian Minister of Energy Security announced to the outside world that 15 of the 27 EU member states have now expressed opposition to the proposal and reached a consensus that they do not sign. Although Italy did not mention which 15 countries it is, Germany, , the Netherlands, which had many opinions on the "price limit order" before, should be among them. They advocate that those with higher prices win, rather than buying things in this "alliance" way; and Russia has long been saying that if the West dares to limit the price of Russian gas, it is not a joke.
Some analysts believe that the so-called "energy price limit" is to impose a complete embargo on Russian natural gas in a different way, rather than "ensure the internal competition balance between allies." For example, the German government directly approved a 200 billion euro energy subsidy two months ago. As long as enterprises imported natural gas, they can get subsidies and discounts. They have a great advantage in selling high prices in the market to "snatch up"; other countries cannot get subsidies and want to stand on the same starting line as Germany, so they launched this "price limit" mechanism. Therefore, in the view of Germany, Italy and other countries, the primary goal is to protect their energy purchase routes, and the concept of "price" is secondary.
Also worth mentioning is that while European countries are clamoring for this, US media is still fanning the flames and saying: Russia's liquefied natural gas has become a "habit that Europe cannot quit". They say a lot but do very little. Now from multiple aspects, it is almost impossible to pass the price limit order, and each country has its own interests. A commentary mentioned: "US LNG operators made as much as $60 billion this year, more than three times that of last year, and most of them were bought by Europe; if the United States "sympathizes" with their European allies, some countries will not have to fight for it, but unfortunately the United States will never be so generous."