Gas prices in Europe drop ahead of EU price cap discussions

The price of natural gas per megawatt-hour in Europe fell by 7.1% to €198.6 on Thursday, the latest market data showed.

The October gas contract price on the TTF, the Netherlands-based virtual natural gas trading venue, opened Thursday at €200 per megawatt-hour.

At 11.25 p.m. local time (0825 GMT) on Thursday, prices dropped 7.1% to €198.6 compared to the closing price of €213.8 on Wednesday.

Gas prices fell after the EU revealed plans on Wednesday to propose a ceiling price for Russian gas.

EU energy ministers will hold an extraordinary meeting in Brussels on Sept. 9 to discuss proposals on further reducing Russian gas and applying a price cap on imports.

Ursula von der Leyen, president of the EU Commission, stated they aim to reduce Russia’s revenues by reducing natural gas costs, saying, “we will propose a ceiling price for Russian gas.”

-AA