The European Union proposes to set a ceiling on the price of natural gas at 275 euros per MWh

The European Commission proposed on the 22nd to implement a natural gas price limit mechanism
from January next year.
Once gas price fluctuations in the European market meet pre-set conditions, the mechanism will be activated and capped at 275 euros
per MWh.

According to the proposal, the trigger for this gas limit mechanism is that the price of Dutch Ownership Transfer (TTF) natural gas futures, which is the benchmark price for natural gas in Europe, exceeds 275 euros per MWh for two consecutive weeks, and the spread between the TTF gas price and the global LNG price reaches or exceeds 58 euros
for ten consecutive trading days.
The European Commission also said that the mechanism will be suspended at
any time when the market price no longer meets the set conditions, or the limit price affects European energy security.

Cadre Simson, the European Commission's commissioner for energy, told a news conference that Europe was paying high gas prices, which hurt European industry and placed a huge burden
on households.

Market analysts pointed out that the current price ceiling is higher than expected, which may not achieve practical results, but affect the operation of
the energy market.
Currently, TTF gas prices remain around
€120 per MWh.

Previously, EU member states have been divided
over setting a ceiling on gas prices.
Some countries, including Belgium, Greece, Italy and Poland, have pressed for a gas price cap, while Germany, the EU's largest economy, has led the opposition, arguing that a gas price cap could make it harder for the EU to access much-needed gas supplies and reduce the incentive
to curb gas consumption.

The proposal will be discussed at the upcoming special meeting of EU energy ministers on the
24th.