Europe Highly Values the Idea of Extending Gas Price Cap

The European Commission has called for an extension of the gas price cap, noting that since its implementation, only positive results have been recorded. However, diplomats are questioning its necessity against the backdrop of potential risks posed by international instability, reports the Financial Times (FT).

In particular, military conflicts in the Middle East could threaten Europe's gas stability. The coalition has indicated that predicting the evolution of the situation is impossible, meaning that imports of energy resources from the region may be at risk, causing gas prices to spike again.

Another concern involves potential diversions, such as those affecting the Balticconnector gas pipeline that connects Estonia and Finland. According to FT sources, the pipeline has been subjected to “sabotage,” and having insurance for such incidents would be prudent.

Germany has supported the extension, while Belgium, the Netherlands, Denmark, Estonia, and Finland opposed it. As of February 15, the EU has implemented a dynamic gas price cap, set at €180 per megawatt hour (about $2,000 per thousand cubic meters).