BAKU, Azerbaijan, September 26. Artificial measures like price caps can distort the European gas market even further and prolong the energy crisis, the International Gas Union (IGU) told Trend.
IGU said Europe has been working to implement its Repower EU plan and benefiting from the incredible flexibility afforded by two things: LNG and its significant share of market-based pricing.
“It is the fact that close to half of global LNG imports are priced with a gas-on-gas competitive mechanism, that allowed the global supply flows to adjust so rapidly and help Europe fill its gas storage in time for the heating season. A functioning global market is essential to continue to provide flexibility and support energy security, by sending the right price signals to balance supply and demand,” said IGU.
“Ongoing efforts to add new sources of gas supply and the necessary infrastructure, together with prudent measures to enhance efficiency and conservation of energy use are needed to rebalance the global energy market.”
Follow the author on Twitter: @Lyaman_Zeyn