EU closes in on gas price cap

EU energy ministers sought a breakthrough Monday on plans to cap natural gas prices, weighing the danger of allowing prices to soar against the fear of driving exporters elsewhere.

Some entering the meeting in Brussels said an accord appeared to be within reach, with discussions revolving around what price level a cap should kick in.

The issue is urgent, with Europe facing tight energy supplies as it endures winter, because Russia has cut gas deliveries in retaliation for EU sanctions over its invasion of Ukraine.

An agreement on a gas price cap would unlock other measures that are already green-lit, such as joint gas purchases and a new gas price benchmark. Those are contingent on a price-cap accord being reached.

The European Commission had proposed a ceiling of 275 euros per megawatt hour, considered too high by many EU countries.

It attached conditions that countries saw as unattainable, including requiring the price of gas to go above the threshold for at least two weeks, and the price of liquefied natural gas (LNG) to go above 58 euros for 10 days within that same two-week period.

Those tight hoops to jump through reflected reluctance from Germany and the Netherlands over a price cap, which they feared could send LNG to more lucrative markets in Asia.

Ministers said they were now looking at a much lower threshold.

"I think 188 (euros per megawatt hour) -- that will give the right signals to markets," Greek Energy Minister Konstantinos Skrekas said.

"The pressure to reach an agreement today is high, and I'm positive that we can achieve a compromise," said Estonia's economy minister, Riina Sikkut.