French President Emmanuel Macron announced that a pipeline to transport hydrogen between Barcelona and Marseille will extend to the west as far as Germany, while European reports warned that setting a temporary ceiling on the price of gas in the European Union would cause sudden changes and lead to a decrease in liquidity in the market.
Macron said during a press conference with German Chancellor Olaf Schultz on the occasion of the 60th anniversary of the signing of the “Elysée Treaty” between the two countries, that the “H2Med” (Mediterranean hydrogen) pipeline project, which aims to increase the use of hydrogen in Europe, will extend from countries from the European southwest to Germany.
He added, “We decided to expand the (H2Med) project, which will link, thanks to European financing, Portugal, Spain and France (…) with Germany, which will be a partner in this infrastructure strategy in the field of hydrogen.”
On the other hand, Bloomberg reported, quoting sources, that the European Securities and Markets Authority will announce, Monday, in a report, that the start of the decision to set a ceiling for gas prices on February 15, the extent of its impact cannot be limited, indicating the possibility of impacts.
The sources added that the report will indicate that “it is possible that some effects will appear in trading, as soon as the activation of the price control mechanism becomes imminent.” She pointed out that “the decision could lead to major and sudden changes in the market, which could affect the performance of the markets, as well as financial stability.”
On the other hand, the Energy Regulators Cooperation Agency will also publish, on Monday, its preliminary assessment on how gas flows to the region will be affected.--
The new cap requires commitments before it becomes effective, including the need for prices to be higher than 180 euros per megawatt-hour, and they must be at least 35 euros higher than international prices for liquefied natural gas.-
Last December, the European Union agreed to put a temporary ceiling on gas prices, to avoid the extreme fluctuations in the market over the past year, but there are fears that the decision will endanger the Union’s supplies or disrupt market performance, according to Bloomberg.
European countries reached an agreement to limit natural gas prices to 180 euros, ending months of political debate over whether to intervene in an energy crisis that threatens to push the region into recession, but Russia considered the agreement “unacceptable”.
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