BAKU, Azerbaijan, September 12. Gas supply from Russia through Nord Steam 1 (NS1) is not expected to rebound anytime soon, Fabian Rønningen, Senior Analyst at Rystad Energy, an independent energy research and business intelligence company from Norway, said, Trend reports via the company.
“EU energy ministers met on Friday to discuss measures to curb electricity prices in the EU. An outcome of the meeting was that Brussels was tasked with drafting a proposal to cap revenues of non-gas energy producers and use the revenue to reimburse consumers,” the analyst said.
Meanwhile, the Title Transfer Facility (TTF) spot prices continued to fall last week as well. “The TTF spot price ended the week at 191.7 euros per MWh, a 42 percent decline. Prices also opened down on September 12. The TTF front-month has been on a similar trajectory as the spot market, falling 35 percent in the same period as well, ending last week at 202 euros per MWh. This has naturally led to a decline in power forwards as well,” he said.
As the analyst noted, it is not clear whether this optimism in the gas and electricity market will continue, as considerable uncertainty remains with the EU’s discussions on market intervention.
“The ministers backed away from a Russian gas price cap but held the door open for a general price cap on gas, regardless of the source. The final proposal is set to be unveiled tomorrow, Tuesday, and energy ministers are planned to meet later this month to negotiate and approve the final plans. The continued discussions on market intervention are expected to be the dominant factor this week, and going forward for gas, power, and carbon in Europe,” the analyst concluded.
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