European politicians are maneuvering ahead of a key meeting on Friday that aims to tame the impact of the energy crisis and prevent a financial meltdown.
(Bloomberg) — European politicians are maneuvering ahead of a key meeting on Friday that aims to tame the impact of the energy crisis and prevent a financial meltdown.
Gas prices are easing, though still at eye-watering levels, and the toll of industrial shutdowns keeps growing. The European Central Bank is likely to revise down its economic growth forecasts on Thursday. Bloomberg Economics now estimates a recession over the fourth quarter of this year and the first quarter of next.
The UK Prime Minister Liz Truss will set out her plan to tackle soaring energy bills, using her first significant act in the job to try to head off the intense pressure she faces to ease an historic cost-of-living crisis.
Key Developments:
- Europe faces even tougher winters ahead
- All eyes on the Ukraine pipeline that’s still bringing gas to Europe
- Truss to set out support for Britons facing soaring energy bills
- Europe’s wave of floating gas terminals kick off
Why Europe Wants to Change the Way Power Gets Priced: QuickTake
(All timestamps London.)
Hungary to Help Energy-Intensive Firms (9:40 a.m.)
The government will introduce subsidies for small and medium enterprises in energy-intensive sectors to prevent job losses due to the energy crisis, Cabinet Minister Gergely Gulyas said.
The move will cut gas usage by 25% at state institutions, except hospitals and nursing homes. Temperatures will be limited at 18 degrees Celsius in state institutions.
Zurich Cools Pools to Save Energy (9:14 a.m.)
Swiss banking capital Zurich will switch off outdoor lighting on public buildings and reduce the water temperature in indoor swimming pools as part of a drive to save energy.
While supplies of electricity and gas to Switzerland’s largest city are currently secure, the council said the geopolitical situation means it needs to take action to prevent potential shortages.
Should energy shortfalls occur, the Swiss federal government would oversee the final stage of a four-step response, which would include quotas or partial grid shutdowns to ensure supply, the city said.
China Snaps Bargain Russian LNG (8:47 a.m.)
China is lapping up liquefied natural gas shipments from Russia that most other importers don’t want, due to escalating tension with Moscow.
The Sakhalin-2 LNG export plant in Russia’s Far East sold several shipments to China for delivery through December at nearly half the current spot price in a tender that closed this week. This could help free-up supplies elsewhere, like the US, that China can ship to Europe.
Germany to Help Companies Cope (8:27 a.m.)
Germany will support companies hit by the energy crisis, widening a pandemic-era aid program to help firms hit by surging costs, economy minister Robert Habeck said Thursday in a speech to lawmakers in Berlin. After the ruling coalition agreed on measures to support consumers, Germany will make funding available to strapped businesses.
Gas Prices Fall (8:13 a.m.)
European natural gas prices fell to the lowest in almost a month on the prospect of policy makers intervening in markets to try and rein in an unprecedented energy crisis that’s threatening the broader economy. Inventories also signal a sufficient buffer for the heating season. Benchmark futures dropped as much as 8.3%, slipping under 200 euros per megawatt-hour for the first time since early August.
Hoarding Gas at Sea (7 a.m.)
Energy traders and power utilities are storing the most liquefied natural gas at sea in two years. Congestion at Europe’s terminals is prompting companies to pay for ships to idle off the continent, while ships are waiting in the South China Sea full of LNG for Asian buyers.
Read more: Natural Gas Buyers Hoarding Fuel at Sea to Prepare for Winter
Europe Food Groups Warn of Threat (Wednesday)
European farm and food groups said that energy prices could stop companies from producing essential goods as more are forced to shut or reduce production because of high utility bills.
“The latest increases in energy prices, especially natural gas and electricity, threaten the continuity of agri-food production cycles and therefore the ability to continue delivering essential agricultural commodities, food ingredient and products, and feed materials,” Copa-Cogeca, the Primary Food Processors (PFP) and FoodDrinkEurope groups said in a statement.
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