On the evening of Wednesday, 1 February, the European Union Agency for the Cooperation of Energy Regulators (ACER) published the first daily benchmark for the price of liquefied natural gas (LNG) delivered to the European Union.
Corresponding to the average of several liquefied natural gas marker prices assessed by different entities and the front-month National Balancing Point (NBP) derivative settlement price, this reference price is 55.21 euros/MWh.
In doing this, ACER is fulfilling a requirement of the EU Council’s regulation (2022/2576) on gas solidarity, which has tasked ACER with providing a daily LNG price assessment since 13 January with the aim of publishing a European benchmark by 31 March at the latest.
This requirement is related to another Council regulation (2022/2578) on the ‘market correction mechanism’ (MCM).
In force since 1 February, this legislation provides that, as of 15 February, the price of gas in the EU will automatically be capped when the front-month TTF derivative price—the TTF being the leading virtual trading point for gas in the EU—exceeds 180 euros/MWh for three working days and is at least 35 euros higher than the reference price for LNG during the same period (see EUROPE 13087/1).
Nevertheless, ACER’s press release emphasises, “Prices on 1 February 2023 are well under the MCM activation levels”.
See the press release: https://aeur.eu/f/56s (Original version in French by Damien Genicot)