New price application for LNG from the EU

EU Energy Regulatory Cooperation Agency (ACER) published the daily reference liquefied natural gas (LNG) price for the first time within the framework of the “gas market correction mechanism”, known as the ceiling price application for natural gas, which will come into effect on February 15.

ACER’s first LNG reference price as of February 1 is 55.21 per megawatt-hour Euro it happened. On the same day, the price level at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, was closed at 59.5 Euros. The difference between the two prices was about 4 Euros.

WILL BE PUBLISHED EVERY DAY

ACER will publish a new reference price every weekday from now on. The reference price under the market correction mechanism is calculated based on the average of LNG prices of different institutions and the settlement price in the derivatives markets.

North West Europe, Mediterranean, North East Asia, derivative clearing and ACER LNG price evaluation report are used to determine the price. ACER relies on the Euro exchange rates of the European Central Bank for currency conversion.

CEILING PRICE APPLICATION

EU countries agreed in December that a correction mechanism known as the “ceiling price” in gas prices in the markets would come into effect on February 15th.

The ceiling price will come into effect if the future gas contract traded at the virtual natural gas trading point TTF exceeds 180 Euros for 3 working days and the megawatt hour price of liquefied natural gas in Europe exceeds 35 Euros in the global markets in the same period.

The new reference price in question will be used to determine the difference with the price level in the global markets. On the other hand, the price of future gas contracts traded on TTF reached 340 Euros per megawatt-hour in August. The price in question is 57.2 Euros today. (AA)