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On 8 March, the Agency for the Cooperation of Energy Regulators (ACER) will start applying an updated version (Beta 2.0) of the methodology for its Liquefied Natural Gas (LNG) price assessments.
Why update the methodology and what are the main changes?
- The aim of the Council Regulation (EU) 2022/2576 is for ACER to produce an objective price assessment that reflects the price of LNG spot transactions.
- On some days, there were insufficient eligible LNG spot transactions to calculate the price assessment as per the established methodology.
- ACER’s Beta 1.0 methodology used a 5-day rolling window to aggregate transactions to determine a price reflecting market conditions. Beta 2.0 shifts the weight of the calculation to the most recent transactions and at the same time extending the calculation window to 10 days.
- A single EU LNG price will be calculated on top of the current practice of prices for 2 zones (North-West Europe and South Europe).
The Regulation also requires ACER to publish an LNG benchmark by 31 March 2023. ACER intends to start applying the new LNG price methodology as of 8 March in order to verify it until the benchmark’s go-live on 31 March 2023.
