The EU’s gas market correction mechanism is set to come into effect today, February 15, triggering a regulatory intervention whenever front-month TTF prices exceed the LNG reference price by more than €35 per MWh, OilPrice reports.

However, just as the mechanism is kicking in, natural gas prices in Europe have reached 18-month lows thanks to a combination of regular LNG arrivals and warmer winter weather, trending at €53-54 per MWh ($18/mmBtu). 

 Simultaneously, the Intercontinental Exchange has come up with an alternative to the EU-controlled TTF prices as a hedge against regulatory intervention, to be launched from February 20 onwards.  

Seeing the alignment between futures prices and the EU’s reference price, it seems increasingly unlikely that the market correction mechanism is going to be triggered anytime soon. 

EU wants Egypt to maximize LNG output. The European Union has brokered a deal between Israel and Egypt that could see Israeli offshore gas being sent to the latter’s liquefaction facilities in Idku and Damietta, however, its prospects are murky as the interconnection requires infrastructure upgrades.

Freeport LNG exports first cargo since blast.As the BP-charteredKmarin Diamong LNG carrier departed the Freeport LNG facility earlier this week, the embattled liquefaction plant saw its first LNG export cargo since an explosion and fire halted all operations on June 8.