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EU undetermined on gas solution as prices nearly double
CGTN
A pizza is baked in a traditional Italian oven fired with natural gas, at a restaurant in Bonn, Germany, October 11, 2022. /Reuters
A pizza is baked in a traditional Italian oven fired with natural gas, at a restaurant in Bonn, Germany, October 11, 2022. /Reuters

A pizza is baked in a traditional Italian oven fired with natural gas, at a restaurant in Bonn, Germany, October 11, 2022. /Reuters

The question of how, when and whether to cap gas prices is set to dominate another meeting of European Union (EU) countries on Wednesday, as they pursue a joint plan to target high gas prices - a compromise that has eluded them for weeks.

The 27-country EU is plotting its next move to tame soaring energy prices and shield consumers from surging bills, as Europe heads into a winter of scarce Russian gas, a cost-of-living crisis and the looming threat of recession.

"We need to find a quick solution that will be applicable to all the European Union," a senior EU official said. "National solutions are not a way forward."

EU energy ministers meet in Prague on Wednesday to attempt to provide clearer instructions on what the European Commission should propose as the bloc's next emergency energy measure.

But countries still cannot decide what they want.

With gas prices almost 90 percent higher than a year ago, most EU countries say they want a gas price cap but disagree on its design. Some countries, including Germany, Europe's biggest gas market, remain opposed.

Talks among EU leaders last week did little to clarify the next steps. Those discussions "went in all directions", one EU diplomat said - referring to the numerous options being floated, including a price cap on all gas, pipeline gas, or just gas used to produce electricity.

Warm or cold winter

With so much at stake, seasonal weather forecasts have become unusually important, with traders and policy makers eyeing reports from the EU-funded European Centre for Medium Range Weather Forecasts in particular.

Their Copernicus Climate Change Service produces rolling three-month forecasts that assess the probability of different weather patterns over the continent, using a supercomputer that crunches data from national forecasters.

"The last few weeks have been really busy for us," Carlo Buontempo, director of Copernicus Climate Change Service, told AFP ahead of the publication on Thursday of their next forecast for the November-January period.

"This year, there is clearly a geopolitical interest in the question," he added.

Although it is still too early to make confident predictions about the winter, initial indications are that it will be warm overall, but with a risk of early cold snaps in November and December.

Could Algeria be the savior?

The Algeria-EU Energy Business Forum kicked off on Tuesday in Algiers to provide more energy cooperation opportunities between the two sides.

"Algeria is the largest natural gas producer in Africa, and the third largest supplier of fossil fuel to EU, while EU, in turn, is the most important market for Algerian gas," said Algerian Prime Minister Ayman Benabderrahmane, stressing that "both sides aim to strengthening energy security and promoting renewable energies and energy efficiency."

"Algeria has large potential in terms of oil and gas reserves," he added, noting "the intensification of exploration efforts is at the core of Algerian strategy, and investment opportunities are open to European partners."

European Commissioner for Energy Kadri Simson said that Europe is seeking new gas suppliers following the end of cooperation with Russia, stressing "a big shift in the EU's gas support."

More U.S. import, at higher prices

The U.S. exported more liquefied natural gas (LNG) to Europe than other parts of the world, according to preliminary tanker tracking data.

Almost 70 percent of the U.S. LNG cargoes in September headed to Europe, up from 56 percent and 63 percent respectively in the previous two months.

U.S. spot natural gas prices at the Henry Hub rose in September to $7.88 per million British thermal units (mmBtu), the highest since 2008, as soaring global prices kept demand for U.S. LNG strong.

(With inputs from agencies)

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