ICE may move gas transactions if natural gas price caps are imposed

ICE has warned that it could move its gas transactions elsewhere if the EU imposes a cap on natural gas prices The Intercontinental Exchange (ICE) has warned that it would consider moving its natural gas trading hub outside the EU if the European Union agrees on a plan to cap natural gas prices. In a written statement on the price cap, which the EU calls a “market correction mechanism,” ICE said: “If EU members agree that the market correction mechanism should be implemented immediately, without giving customers and the market infrastructure time for testing and risk management, ICE will also consider all options as a market operator. These options include whether the market in the Netherlands should still continue.” ICE’s TTF market in the Netherlands is the most liquid futures gas market in Europe. The EU Commission had recommended that member states should implement the market correction mechanism if the gas price in TTF futures contracts exceeds 275 euros/MWh for two weeks and if the LNG reference price remains above 58 euros for 10 days. If the energy ministers of EU member states agree on this proposal at their meeting on Monday, the price cap will go into effect on January 1. "The price of natural gas for Europeans will be determined at a center in Turkey" Russian President Vladimir Putin stated that the price of the gas they will send to Europe will be determined largely at a center expected to be established in Turkey, and said, "Turkey's natural gas infrastructure has significant potential. An electronic platform for trade can be established at the natural gas center to be established in the coming months."