Reuters: EU wants market-led response to any Russian gas crisis: Kemp

“A price increase is not a supply crisis and not a justification for intervening in the market under the pretext of security of supply,” the European Commission warned member states on Thursday as it outlined how markets would be effected if gas deliveries are cut this winter as a result of the dispute between Russia and Ukraine.

Gas prices could double as a result of a shutdown in transit shipments, according to the International Energy Agency, but the European Commission insists they must be allowed to rise to promote fuel switching and reduce non-essential demand as well as attract additional LNG cargoes to replace lost supplies from Russia.

EU officials have modeled the impact of a six-month shutdown in Russian deliveries during an average winter but with a two-week cold snap in February when demand is typically highest and gas stocks would be depleted.
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