Europe is reportedly considering introducing a “temporary dynamic price corridor” for gas supplies.

According to Bloomberg, European leaders are looking at a range of proposals for gas price caps, including a “dynamic price limit” for transactions on the Dutch Title Transfer Facility (TTF), the European benchmark price for gas.

Earlier this month, the President of the European Commission urged EU leaders to vote in favour of a gas price cap.

In a speech to the European Parliament in Strasbourg, Ursula von der Leyen said: “Such a cap on gas prices must be designed properly to ensure the security of supply and it is a temporary solution to cater for the fact that the TTF that is our main price benchmark is no longer representative for our market.”

The reported proposals follow a warning by Gazprom’s Chief Executive Officer Alexei Miller that plans to cap the price of Russian gas exports could cause supplies to be halted.

Last week, in his speech at the Energy Week conference in Moscow, Mr Miller said: “Winter can be relatively warm, but one week or even five days will be abnormally cold and it’s possible that whole towns and lands, god forbid, will freeze.”

Article source: https://www.energylivenews.com/2022/10/18/eu-mulls-dynamic-gas-price-cap-as-gazprom-warns-over-potential-supply-halt/