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EU Details Proposal to Cap Natural Gas Price at Major Global Hub

  • European Commission unveils mechanism to limit high gas prices
  • EU member states to discuss gas price controls on Wednesday

The European Union’s executive is considering proposing a maximum price ceiling for one of the world’s biggest natural gas hubs to help contain an unprecedented energy crisis and meet the demands of governments calling for the controversial tool.

The exact parameters to trigger the so-called market correction mechanism on the Dutch Title Transfer Facility would be fixed upfront to avoid lengthy decision-making procedures, according to a European Commission document shared with member states on Tuesday. There would also be safeguards to ensure the temporary instrument can be suspended at any time if it were to endanger the security of supply and flows within the EU market.