Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
yahoo! Bloomberg | Stressed by Margin Calls of $1.5 Trillion - Equinor, 6 Sep cockroach alerts
"Liquidity support is going to be needed," Helge Haugane, Equinor's senior vice president for gas and power, said in an interview. The issue is focused on derivatives trading, while the physical market is functioning, he said, adding that the energy company's estimate for $1.5 trillion to prop up so-called paper trading is "conservative."
So far Germany has introduced Europe's biggest scheme to backstop companies affected by the fallout of the war in Ukraine, setting aside 7 billion euros in loans to be made available to companies facing liquidity issues. German energy giant Uniper SE last week sought an extra 4 billion euros after fully using a 9 billion-euro existing facility, while Austria extended a 2 billion-euro credit to cover the trading positions of Vienna's municipal power utility. Finland and Sweden announced a $33 billion emergency liquidity facility Sunday to backstop utilities through loans and credit guarantees.
"Power is a local, i.e. domestic, market, so in this case it would be possible to do something governments could control," Haugane said. "But the issue of a gas price cap is different, because the natural gas market is global, and hence not that easy to manage."
The European Commission is also examining measures to help with liquidity. These could include credit lines from the European Central Bank, new products as margin collateral, and temporary suspensions of derivatives markets, according to a policy background paper seen by Bloomberg News.
"I have not seen any of the major trading houses have a liquidity issue, they all managed to find lines of credits and bank facilities and they are all making more money than they have ever made," Souki said in an interview at Gastech. "For the utilities in Europe, it is a serious issue because they are buying gas that is now all of the sudden is extremely expensive, and they are regulated by their respective governments."
RT | Fall in Russia's share of EU gas disclosed
The share of Russian gas in the European Union market has plummeted from 50% to 9% since the beginning of the current year, French President Emmanuel Macron said on Monday....
Who is collecting premium from 90% share of EU market?
Russian gas imports by EU nations have inevitably been decreasing, Macron told a news conference following a phone call with German Chancellor Olaf Scholz. He stressed that it was necessary to act against speculation on energy prices at the EU level, adding that France was in favor of putting a cap on the price of [discount] Russian pipeline gas ...
another helping of "no" cap! NO CAP!, 5 Sep
"OPEC+ agrees small oil production cut"
by Cat on Wed Sep 7th, 2022 at 03:21:26 AM EST
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by Cat on Wed Sep 7th, 2022 at 02:53:00 PM EST
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More from Habeck
Er weiß, wie man die Herzen berührt: Bundeswirtschaftsminister Robert Habeck hat heute tröstende Worte an eine Beerdigungsgesellschaft gerichtet, die sich anlässlich des Todes von Heidrun Märting (†93) versammelt hatte.

"Keine Sorge!", beruhigte der Grünen-Politiker die Trauernden. "Ihre Oma ist nicht tot, sie hat nur einfach erst mal aufgehört zu atmen."

by gk (gk (gk quattro due due sette @gmail.com)) on Wed Sep 7th, 2022 at 03:31:57 PM EST
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by Cat on Wed Sep 7th, 2022 at 03:37:10 PM EST
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Exhibit A: Macron: France, Germany to provide each other with gas, electricity, to weather crisis, Exhibit B: Macron in favor of European mutual aid to tax 'superprofits' and avoid shortages, ...

No need to continue my search for The Missing-5-Minute Monday Morning Macron waterloo tape ...

APsplainin EU ["EMBARGO"] price cap on Russian gas, energy companies to pay, 7 Sep blood, stone

European Union countries should set a price cap on Russian natural gas and seek a "solidarity contribution" from European oil and gas companies making extraordinary profits as the war in Ukraine drives up energy costs, European Commission President Ursula von der Leyen said Wednesday. ... She declined to recommend any price cap levels, saying that should be agreed during emergency talks among EU energy ministers Friday. The bloc's executive arm is putting a raft of proposals on the table for the ministers to discuss.
Russian pipeline gas accounted for 40% of all imported gas into Europe before Putin ordered the invasion of Ukraine in February but now only accounts for 9%, von der Leyen [eh?]. Norway now delivers more gas to the bloc than Russia.
archived Norway does not plan to sell gas at below market price...
by Cat on Wed Sep 7th, 2022 at 06:09:30 PM EST
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vOLdEmoRT: EU suggests price cap on US LNG, 7 Sep
Brussels is examining the possibility of a price ceiling on all gas imported into the EU, including liquefied natural gas (LNG), European Commission President Ursula von der Leyen said on Wednesday.
< wipes tears >
"LNG is scarce and can be rerouted to different regions... We [want to] stay competitive for LNG suppliers but make sure that the prices we pay are not extraordinarily high but in a decent range," she told reporters.
< wipes tears >
EU countries mostly import the costly LNG from the US and Qatar, using it to diversify gas imports in light of
shrinking supplies from Russia. However, some analysts warn that producers might not be eager European countries if their profits are capped.
She noted that since Russia launched its military operation in Ukraine, the share of Russian pipeline gas in the EU's total imports has dropped from 40% to 9% while Norway has replaced Russia as the bloc's leading gas supplier.
archived deadlock, "divertible" contracts and stinky beggars
by Cat on Wed Sep 7th, 2022 at 08:14:13 PM EST
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Bloomberg | EU Weighs Gas [EMBARGO] Price Caps and Benchmarks to COMBAT ["shrinking"] Russian Squeeze, 5 Sep Macron Monday hot cake
The European Union is weighing new gas benchmarks and price caps as Moscow's tightening supply squeeze forces the 27-nation bloc to assess drastic measures to curb spiking energy costs.
As part of preparations for the gathering, the European Commission is also assessing options to subject the Dutch Title Transfer Facility -- the virtual gas marketplace whose main index is used for long-term contracts in Europe -- to financial supervision to avoid speculation, according to internal EU documents seen by Bloomberg News on Monday.
build back better merit order
"The price premium [op margin, net profit] between the TTF and Europe's LNG delivered ex-ship < wipes tears > indices has widened significantly bringing up questions about its representativeness as an index for linking the contracts in the whole EU-27," the commission said in the document.
As a last resort in case of supply disruption in Europe, the EU could also explore temporarily pegging the TTF to the JKM Asian benchmark as a dynamic cap. Yet that would require the use of other hubs or mechanisms to allocate gas inside Europe, the commission said in the document on benchmarks for The Wholesale Gas Market.
buh-bye OPEC. buh-bye Brent. buh-bye WTI
"In this situation, JKM would become The World Price for international gas for some time," the commission said. "The Wholesale mMarket would be therefore determined by LNG supply/demand, and not by the EU's internal bottlenecks. < wipes tears > LNG would still be attracted by the fact transport costs ["a few euros"] are lower to the EU."
< wipes tears >
In the document, the commission stressed that while Russia has already sharply reduced shipments to the EU, this option should only be considered if the bloc is ready to accept a full disruption.

"The price cap should be designed in a way that Russia finds itself worse off under a gas delivery stop than complying with the price cap," the commission said in the document. "Given that in the previous decade (2010/2020), prices of Russian gas have settled between 5 euros and 35 euros/MWh, any cap above that level would ensure that Russia would be above its marginal production costs."

EC | EU-U.S. LNG TRADE a/o Jan 2022
"Europe is currently importing around 90% of the gas it needs [...] Since the meeting of US and EU Commission Presidents in 2018, U.S. LNG exports into Europe increased by 2240%.[...]The fact is that U.S. LNG, if priced competitively, can play an important role in EU gas supply, enhancing diversification and EU energy security."
by Cat on Wed Sep 7th, 2022 at 09:11:43 PM EST
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The EU imported 155 billion cubic meters of natural gas in 2021 from Russia, including liquefied natural gas (LNG).
soooo how to cap US-LNG imports without capping US-LNG prices by Q4?
at USD 40 or EUR 40? Srsly?
S&P | Global gas-to-oil fuel switching to jump 80% as European, Asian gas prices soar, 7 Sep
"The daily physical assessment reached $71.01/MMBtu on Aug. 25, the highest level since March 7, when the benchmark hit a record-high $84.76/MMBtu."
by Cat on Thu Sep 8th, 2022 at 12:27:02 AM EST
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Politico.eu.com | Cap the cost of all gas imports to EU, Belgian PM says, 8 Sep scope adjustment
The European Union should impose a radical plan to cut the cost of energy by capping the price paid for gas imported from anywhere else in the world, Belgian Prime Minister Alexander De Croo said in an interview
The Plan objective—which is not absolute elimination of EU fuel consumption and waste (Q)—has not changed. The feasible domain of EU enforcement has. Establishing an explicit boundary of rationality around the EU27 is nice, given that lingering errors in EU problem recognition d/b/a sanctions against Russian gas restrain holy free trade NORMS and indiscriminately penalize ROW.
cap only on gas imported from Russia...the [sic] mounting economic crises, fueled by Russian President Vladimir Putin's invasion of Ukraine ...cutting gas supplied to the bloc in retaliation for sanctions imposed on Moscow by Brussels
Eurocentricity will not go quietly into the night, figuratively speaking.
Under De Croo's proposal, the cap on all [EU27] gas imports would need to be implemented in a "dynamic way" [EUR-denominated value band; See EC draft] to ensure that there was still a reason [other than "sustainable" value-add/margin/profit transactions?] for traders to sell gas [produced by "third-countries" anywhere] to Europe rather than, for example, in Asian markets.

Asian [LNG] prices are currently about half of those in Europe ["ex-post": "a few euro" freight by wght + P&I + customs FTE admin], De Croo said. If Europe sets The Price Cap 5 percent higher than [JKM] Asia [index], he explained, "all traders in the world will still continue to sell in Europe, because you they still get a price that is more attractive greater than Asia buyers can afford."

epiphany however fleeting
Earlier on Thursday, Belgium's Energy Minister Tinne Van der Straeten went even further and said Belgium would not support the Commission's plan to impose a price cap specifically on Russian gas imports.

"A cap on Russian gas only is a purely political objective," the Green politician told reporters. "I don't see the added value in that. We will not agree to this."

EC | draft electricity market emergency interventions
NB. disposition of revenue earned by renewable energy generators to maintenance of fossil fuel P&E
by Cat on Fri Sep 9th, 2022 at 02:17:16 PM EST
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APsplainin Summer of '22 brought record heat, solar power to Europe, 8 Sep
The [Ember] group said [18/]27-nation bloc generated [12.2]% of its electricity from solar power from May to August, up from 9% during the same period last year. Solar energy narrowly topped the share provided from wind [11.7%] or hydropower [11%], while coming in just below that produced from burning coal [16.5%].

Ember said that without the 99.4 terrawatt hours of electricity provided by solar, the EU would have had to buy 20 billion cubic meters of gas, costing about 29 billion euros (nearly $29 billion) during the four-month period.

...In order for solar capacity and generation to match necessary ambition by 2030 --
as well as REPowerEU targets -- this rate of deployment must continue. However, Ember's recent analysis shows that projections for the upcoming years fall short of the goal, with annual capacity additions in 2026 meeting only 46% of the value required under 1.5C pathways. This is largely due to permitting bottlenecks, with several countries exceeding the legally binding limits of project development times—these barriers need to be addressed for solar to keep growing....

The Netherlands and Germany, not known for their sunny climates, had the highest share of electricity from solar, followed by Spain. Poland saw the biggest increase in solar power generation compared with 2018, increasing installed capacity 26-fold, the report said....

Ember Group methodology
by Cat on Sat Sep 10th, 2022 at 02:09:40 AM EST
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My solar panels on the coast in The Hague +30% 🌤☀️ Nice 😄

'Sapere aude'
by Oui (Oui) on Sat Sep 10th, 2022 at 07:57:01 AM EST
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euractiv | EU countries call on Brussels to cap gas prices, but leave out details, 9 Sep longitudinal embargo studies
...Germany, for its part, suggested that a complete ["]stoppage["] in Russian gas imports would not do more harm to its economy since Moscow has already ["]halted["] deliveries exports through the Nord Stream 1 pipeline last week.

"Germany no longer gets Russian gas and we can still store it," said German economy and climate minister Robert Habeck. "This means that the market no longer expects us to collapse if there is no Russian gas."...

archived What this means, I believe, is ... in Krugman-Admits-He-Was-Wrong! (Pt. 1?)
by Cat on Mon Sep 12th, 2022 at 01:47:52 PM EST
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