European Union Emissions Trading Scheme (ETS) allowances fell 6.4% to €58.20 per tonne in Sunday electronic trading, the lowest level since late October, as Brussels' confirmation of a $182 billion U.S. LNG and Norwegian gas pipeline replacement framework eased near-term demand for coal-fired power generation hedges. The permit price has now fallen 28% from its early April peak of €81.20.
The framework agreement, finalized at Sunday's emergency Brussels summit, calls for the EU to absorb 188 billion cubic metres of incremental U.S. liquefied natural gas annually through 2032 and lock in $42 billion of Norwegian Continental Shelf supply expansion. The arrangement effectively eliminates residual Russian pipeline gas dependency by 2027, two years ahead of the prior REPowerEU schedule.
Utility Rotation Underway
European utilities posted divergent moves Sunday. Engie (ENGI.PA) and EDF (EDF.PA) gained 2.8% and 3.1% respectively on lower carbon costs, while Germany's RWE (RWE.DE) added 4.1% as its lignite generation fleet captures relief from permit pricing. Conversely, renewable-focused Ørsted (ORSTED.CO) fell 1.6% and Iberdrola (IBE.MC) eased 0.8% as the relative competitiveness of renewables versus thermal generation narrowed.
European natural gas at the Dutch TTF benchmark fell 9.1% to €34.20 per megawatt-hour, the lowest since late February. The price had spiked above €56 on April 11 amid concerns about Russia pipeline shutoffs and Iran-Israel hostility risks to Mediterranean shipping.
US LNG Exporters in Focus
Cheniere Energy (LNG) gained 3.6% in U.S. pre-market, while Sempra (SRE) added 2.4% and Venture Global (VG