Macron noted that the share of Russian gas, which was 50 percent of Europe’s gas needs before the war in Ukraine, has fallen to 9 percent. Then he announced a package of initiatives and proposals, including his support for “joint purchase of gas” with the aim of obtaining “cheaper” prices for Europe, while setting a ceiling for the price of Russian gas delivered through pipelines.
He continued: “If the Commission has to decide whether to set a ceiling on the price of gas delivered through pipelines from Russia, France will support this measure.”
Russia’s national gas company Gazprom’s decision to cut deliveries for a longer period via the Nord Stream 1 gas pipeline increased European gas prices by more than 30 percent on Monday.
Philip Charles, an expert on energy issues at the Sabines Institute, said in his statement to “Sky News Arabia”, “Macron is seeking, through his proposal, for France, Germany, Italy, Belgium and the Netherlands to meet in one gas purchase deal, which means a large amount and a lower price.” It seems that this is technically possible. The first proponent of this idea is Germany.”
And he continues: “However, for the rest of the countries, it is not easy, because each country has its own resource, in addition to the fact that the volume of imported gas varies according to the needs of each European country. France, for example, imports gas from Norway at a greater rate than that coming from Russia, unlike Germany, which covers about 55 percent of its needs from Russia.
And it is considered, on the other hand, that “this process can take place in the event of making new deals related to liquefied natural gas, which is sold by shipments, which guarantees sales operations at the supplier at a cheaper price.”
capping the price of gas
To limit rising gas prices, France will support the principle of capping Russian gas prices if the European Commission supports it, but it is a measure that has lost its power as deliveries from Gazprom have collapsed.
The expert in energy issues believes that “if the matter is similar in content to the ceiling of oil prices as proposed by the Group of Seven, it is unlikely to be achieved.”
He explains: “We do not currently know the oil we consume from which country it was originally imported, because it could be Russian oil that was sold to India, China or the Middle East. That’s why limiting the sale of Russian oil in global markets is not possible.”
On the other hand, Charles points out that in the case of gas, “it depends mainly on the relations between the seller and the buyer. That is, the process of refusal or acceptance will be directly between Europe, which intends to determine its price or refuse to buy it from Russia, while Moscow has the right to refuse or accept the terms.” “.
And he concludes: “And at a time when Europe is suffering from a shortage of energy, I don’t think it has the power and ability to impose gas prices on Russia.”
To face the energy crisis at the European level, EU energy ministers are scheduled to meet on September 9 to discuss measures to contain high prices. On the table are options such as capping the price of imported gas, capping the price of gas used to generate electricity, or temporarily withdrawing gas-fired power plants from the current European electricity pricing system.
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