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| Ten EU countries want to extend emergency gas measures introduced during last winter's energy crisis. (Source: Reuters) |
According to the Financial Times , despite recent energy price falls and high gas reserves, Brussels is concerned that gas supplies could still be at risk during the heating season due to the Israel-Hamas conflict.
“We don’t know what will happen this year. We don’t know how the situation in Israel will affect imports from the Middle East,” said an EU diplomat.
Many analysts warn that any escalation of the conflict could send gas prices soaring.
Another risk affecting gas prices is sabotage of gas infrastructure, especially after the recent leak at the Balticconnector pipeline.
The undersea gas pipeline connecting Finland and Estonia was shut down in early October due to sabotage.
This weekend, 10 EU member states, including Germany and Austria, sent a letter to the European Commission asking for an extension of emergency measures introduced during last winter's energy crisis, when gas prices in the EU reached more than 300 euros per megawatt hour.
Among the measures implemented is a “market adjustment mechanism” that will cap the market price of gas at 180 euros per megawatt hour if gas futures trading is higher for three consecutive days.
Under this mechanism, gas prices are now nearly 90% lower than last year. However, this price cap policy is due to expire in January 2024.
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