[Asia Economy Reporter Park Byung-hee] European Union (EU) energy ministers have agreed on joint gas purchasing to respond to the energy crisis but failed to reach an agreement on the introduction of a gas price cap.
On the 12th (local time), at the EU energy ministers' meeting held in Prague, the capital of the Czech Republic, major foreign media reported that the EU agreed to jointly purchase gas within the next few months.
Jozef S?kela, Minister of Industry of the Czech Republic, which holds the rotating presidency of the EU, stated that the EU has generally agreed to start joint gas purchasing before next summer. He said, "We want to expedite joint gas purchasing utilizing the purchasing power of the entire EU," adding, "Through this, we plan to secure supply stability for the next winter, which will be even more precarious than this winter."
EU energy ministers also agreed to establish a new price benchmark to replace the current gas reference price. The new energy measures agreed upon by the EU energy ministers are expected to be announced on the 18th.
However, foreign media reported that whether to include a gas price cap in the energy crisis response plan to be announced next week remains unresolved.
Kadri Simson, EU Commissioner for Energy, said it is uncertain whether there is sufficient support among member states for applying a price cap on gas prices used for power generation.
Many EU member states want to introduce a gas price cap, but there is no agreement on the specific method. Controversy exists over whether to apply the cap to all gas, only gas transported through pipelines, or only gas used for power generation.
While a broadly applied gas price cap has been discussed, Germany and the Netherlands recently warned that if the gas price cap is widely applied, Europe may face difficulties securing gas supply.
Norway, which is not an EU member but attended the meeting, expressed opposition to the gas price cap. Norway has emerged as a major gas supplier to Europe after Russia cut off gas supplies.
Commissioner Simson added that discussions on the gas price cap for power generation gas could advance over the weekend.
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