ICE may move its gas hub out of the EU if a gas price cap is introduced

The international network of exchanges Intercontinental Exchange (ICE) may be forced to move its gas hub Title Transfer Facility (TTF) from the EU if the union decides to impose a cap on gas prices. This was reported The Wall Street Journal with reference to the statement of representatives of the exchange.

“It is the duty of ICE, as a market operator, to consider all options if this mechanism (a gas price ceiling — Kommersant) is agreed, up to and including whether an efficient market in the Netherlands is still viable,” ICE said in a statement ( quote from Interfax). TTF is currently based in Amsterdam.

ICE believes that the gas price cap will come into effect without system testing and customer adaptation. The EU’s plans to impose a price cap will backfire as expected by pushing up gas prices in Europe, the statement said. According to representatives of the exchange, the restrictions will increase additional costs that will be passed on to consumers.

December 15 EU summit did not agree gas price ceiling. The discussion will continue on December 19. According to the plan presented by the European Commission, the price ceiling will come into effect if the gas price on the Amsterdam Stock Exchange exceeds €275 per 1 MWh (about $3,000 per 1,000 cubic meters) for at least two weeks. The difference with the LNG price must exceed €58 for at least ten days.

Politico previously wrote that the restrictions threatened to render the world’s largest exchange, ICE, “unviable.” According to the publication, some European officials are also concerned about such consequences. The idea of ​​a gas price ceiling, in particular, was extremely negatively treated by the government of the Netherlands.

Read more about the risks of ICE when introducing restrictions on gas – in the material “Kommersant FM” “The gas price ceiling was assessed by the level of risk”.

Erdni Kagaltynov