Oil report

Italy proposes any gas price cap should be applied in all EU hubs

ROME, Sept 7 (Reuters) - Italy is proposing that any price cap on natural gas should be applied to all transactions with delivery at EU hubs and not just to imports from Russia, a document seen by Reuters showed on Wednesday ahead of a key EU summit on energy scheduled for Sept. 9.

The European Union proposed a price cap on Russian gas after President Vladimir Putin threatened to cut off all energy supplies if it took such a step, raising the risk of rationing in some of the world’s richest countries this winter.

Under the Italian proposal, “all physical and financial transaction in all European hubs should be subject to the price cap (i.e. imports from Russia but also other imports, including EU domestic gas production, TTF but also other hubs),” the document said.

The cap should be sufficiently high versus pre-war levels, temporary, regularly reviewed and take in to consideration LNG international prices, the document added. (Reporting by Giuseppe Fonte in Rome Editing by Gavin Jones and Matthew Lewis)