{"id":4597,"date":"2023-03-31T14:52:20","date_gmt":"2023-03-31T14:52:20","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=4597"},"modified":"2023-03-31T14:52:22","modified_gmt":"2023-03-31T14:52:22","slug":"eu-extends-gas-price-cap-system-to-all-eu-hubs","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/4597\/","title":{"rendered":"EU extends gas price cap system to all EU hubs"},"content":{"rendered":"<div class=\"entry-content\" itemprop=\"description\">\n<p>The European Commission will extend its gas price cap system to all trading hubs in the European Union from May to prevent potential distortions to Europe&#8217;s energy markets, it said on Friday.<\/p>\n\n\n\n<p>EU countries agreed the cap\u00a0in December after drawn-out talks over taming gas prices that hit record levels after Russia cut gas deliveries to Europe following its invasion of Ukraine.<\/p>\n\n\n\n<p>For now, the cap is triggered if prices exceed 180 euros ($196) per megawatt hour for three days on the Dutch Title Transfer Facility (TTF) gas hub&#8217;s front-month contract.<\/p>\n\n\n\n<p>The TTF price must also be 35 euros\/MWh higher than a reference price based on existing liquefied natural gas (LNG) price assessments for three days.<\/p>\n\n\n\n<p>TTF derivatives account for more than 90% of the natural gas derivatives traded on regulated markets in the European Union.<\/p>\n\n\n\n<p>The Commission said its &#8220;market correction mechanism&#8221; would extend to derivatives linked to trading in\u00a0all other EU hubs\u00a0from May 1.<\/p>\n\n\n\n<p>The EU executive said the move would provide an even broader shield against high and volatile gas prices and help avoid potential distortions from applying it solely to TTF derivatives.<\/p>\n\n\n\n<p>If triggered, trades would not be permitted on the front-month, three-month and front-year TTF contracts at a price more than 35 euros\/MWh above the reference LNG price, which is currently set at 39.09 euros\/MWh.<\/p>\n\n\n\n<p>This caps the price at which gas can be traded, but the cap can fluctuate alongside global LNG prices &#8211; a system designed to ensure EU countries can still bid for gas in global markets.<\/p>\n\n\n\n<p>The front-month TTF gas price contract hit a record high of 343 euros in August, but was trading on Friday at 45.70 euros\/MWh, Refinitiv Eikon data showed.<\/p>\n\n\n\n<p>The cap mechanism is designed to be temporary, applying until January 2024.<\/p>\n\n\n\n<p>($1 = 0.9185 euros)<\/p>\n<div class=\"post-date no-social-btn post-updated\">Updated on<time class=\"updated dt-updated\" itemprop=\"dateModified\" datetime=\"2023-03-31T14:52:22+00:00\"> 31 March 2023<\/time><\/div><\/div>","protected":false},"excerpt":{"rendered":"The European Commission will extend its gas price cap system to all trading hubs in the European Union from May to prevent potential distortions to Europe&#8217;s energy markets, it said on Friday. EU countries agreed the cap\u00a0in December after drawn-out talks over taming gas prices that hit record levels after Russia cut gas deliveries to [&hellip;]","protected":false},"author":1,"featured_media":4598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17,20,36,19],"tags":[],"services":[],"class_list":["post-4597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-gas","category-lastnews","category-news"],"_links":{"self":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/4597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/comments?post=4597"}],"version-history":[{"count":0,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/4597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media\/4598"}],"wp:attachment":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media?parent=4597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/categories?post=4597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/tags?post=4597"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/services?post=4597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}