As Russian gas stops flowing, Italy suggests EU do this urgently, EC confidently says "no concerns"

Fears of an energy shock have grown in Europe, after Ukraine refused to extend a Russian gas transit deal.

Gas supplies in Europe have been boosted by LNG deliveries. An LNG storage facility in southeastern England is pictured. (Source: Getty Images)

To prevent future gas price shocks, Italian Energy Minister Gilberto Pichetto said the European Union (EU) must urgently extend the gas price ceiling.

The 27-member bloc needs to set a price cap of 60 euros per megawatt hour of gas to prevent price increases.

The current price cap on gas being implemented by the EU is due to expire at the end of January 2025. The price cap only applies if gas prices in Europe exceed 180 EUR per Megawatt hour.

However, in reality, since the early days of the Russia-Ukraine conflict that began in February 2022, gas prices in Europe have not exceeded this ceiling.

Calling for a new price cap on gas in Europe, Italian Energy Minister Gilberto Pichetto said: "I think at this point the EU should extend the price cap. We have asked for it, but not at 180 euros. Right now, the price cap should be at 50 or 60 euros."

Italy has enough gas to meet domestic demand for the next two months, Minister Gilberto Pichetto said. "Italy's gas storage facilities are almost at 80% capacity," he added.

In addition, Rome is set to start construction on a new liquefied natural gas (LNG) terminal in April this year that will be able to import up to 28 billion cubic meters of LNG per year.

This figure is equal to the amount of gas that Italy imported from Moscow via Kiev's gas pipeline in 2021.

* In a related development, on January 2, the European Commission (EC) and Central and Eastern European countries met to assess the gas situation and are expected to meet again on January 7 to continue the review.

“There are no concerns regarding gas supply,” the EC said.

Gas supplies have been boosted by “significant” LNG deliveries. Gas stock levels in Europe are now at 72%, slightly higher than at the same time last year.

Source: https://baoquocte.vn/khi-khi-dot-nga-ngung-chay-italy-goi-y-eu-lam-dieu-nay-khan-cap-ec-tu-tin-noi-khong-co-moi-lo-ngai-nao-299849.html