The Intercontinental Exchange, owner of the TTF gas spot and future market in Amsterdam, announced the opening of a parallel gas market in London on February 20, five days after the EU socalled “price cap” entered into force. ICE had warned that it would move out of Amsterdam in case a price cap was implemented. Now ICE said they will continue to operate the Amsterdam market but will open a London market in order to provide its customers an “insurance option.” London is outside the EU and is not subject to its rules.
Gas price is now much lower than in December, at 70 Euro per Mwh. However, it could spike after Feb. 15 or any time in the future. The EU price cap would be triggered by a future price higher than 180 for three days and also 35 Euro higher than the average price for LNG. This is a
stratospheric price, but apparently “the markets” do not rule it out.
