The need to create a new reference point for the price of LNG was mentioned Chairman of the Commission Ursula von der Leyen Speaking at the plenary session of the European Parliament in Strasbourg.

Ms von der Leyen noted that “the current benchmark for gas prices is the TTF. TTF specializes in pipeline natural gas. We need a new concrete LNG price benchmark. The Commission will now develop this additional standard together with the European regulator. But this takes time. So, in the interval (…) we limit the values ​​u200bu200bthrough TTF. We call this the market correction mechanism. Yesterday we proposed guidelines as a first step. On this basis, we will prepare a working mechanism in the second stage. This is about the natural gas ceiling at the wholesale level.”

He also stressed that “Europeans should buy gas together.” Therefore, we will buy gas together at the EU level, demand aggregation will be mandatory for at least 15% of the volumes needed to fill gas storage facilities. And the companies involved can form a gas purchase consortium.”

At the same time, the President of the Commission stressed solidarity measures among Member States.

“In our single market with highly integrated supply chains, a disruption in one Member State has a huge impact on all Member States. Therefore, the separation of gas in a crisis is crucial. Member states are already required under EU law to conclude solidarity agreements for five years. However, only 6 out of 40 possible deals have been agreed to date. It’s just not enough. That’s why we will set default rules for member states. This will be binding until they conclude individual solidarity agreements.”

Ursula von der Leyen concluded that the goal is to protect Europeans from “the other war that Putin is waging, the war against our energy.”

What does the draft Synod say?

The European Council condemns in the strongest possible terms the recent indiscriminate Russian missile and drone strikes against civilians and civilian infrastructure in Kyiv and across Ukraine, the summit’s draft conclusions say.

With regard to energy, it is stressed that the EU will remain united to protect its citizens and businesses and will urgently take the necessary measures.

It is noted that the European Council calls on the Council and the Commission to urgently take the following measures, taking into account various combinations of energy resources and national conditions, and to assess their impact.

According to the draft, the European Council agrees to a common gas market, starting with the filling of natural gas storage, but also speeding up the negotiations. It also agrees to develop an additional indicator that more accurately reflects conditions in the natural gas market. agreeing to consider a temporary “dynamic” corridor in natural gas trade to contain prices.

Besides, a temporary European price ceiling structure for natural gas used for electricity generation is proposed, as well as measures to speed up procedures related to renewable energy. Finally, the European Council focused on the adoption of energy solidarity measures in case of disruption of natural gas flows at the national, regional and EU levels.

At the same time, the draft conclusions denounce Russia’s actions at the Zaporizhzhya nuclear power plant and emphasize EU support. the efforts of the International Atomic Energy Agency to maintain the safety and security of facilities. Also, according to the draft, the European Council emphasizes that war crimes against Ukrainians, the evidence of which is growing, and the continued destruction of civilian infrastructure are a gross violation of international law, and calls on the Belarusian authorities to stop allowing war to Russia. aggression, allowing the Russian armed forces to use the territory of Belarus and provide support to the Russian military.

With regard to Iran, the European Council condemns the unjustified and unacceptable use of force by the Iranian authorities against peaceful demonstrators, especially against women, and welcomes the restrictive measures taken on 17 October 2022 against those responsible for serious human rights violations.

with information from APE-MPE