According to Reuters article published on December 22, 2022, the EU gas price cap will be positive for the market and may reduce price volatility, Poland's PKN Orlen (PKN.WA) said on Thursday after the bloc reached an agreement aimed at containing the energy crisis.
Ministers on Monday agreed to trigger a cap if prices exceed 180 euros ($190.84) per megawatt hour for three days on the Dutch Title Transfer Facility (TTF) gas hub's front-month contract, which serves as the European benchmark.
"We see the main benefit...to be the reduction of the risk of a permanent destruction of demand for gas in Europe, which could take place in a situation of persistently high gas prices," PKN said in a statement in response to questions from Reuters.
"We also assume that a significant, positive effect of the introduction of the limit may be the reduction of rapid changes in gas prices, which had a negative impact on the functioning of the gas market and gas companies," it added.
