The EU Commission has given the go-ahead for a new process to achieve lower gas prices in the EU and ensure security of supply this winter. Companies can now register their gas requirements.
The EU is pushing ahead with its plans for joint gas purchases: From today, European companies can register their gas requirements on a platform in order to participate in the EU’s first joint gas purchase, as the EU Commission announced in Brussels. This is an important milestone for the EU to prepare for next winter.
Procure storage targets together
Against the background of the Ukraine war and the sharp rise in energy prices, the EU Commission had proposed filling the gas storage facilities in a coordinated manner in 2023. The EU relies on concentrated market power to achieve lower gas prices. In addition, it should be avoided that the EU countries outbid each other, as was the case last year. The EU countries had agreed to obtain offers via the platform for at least 15 percent of their national storage targets.
After the individual companies have registered their requirements, the total quantity is put out to tender on the world market. Subsequently, offers from international gas suppliers are to be compared before the participating companies enter into negotiations with suppliers. The Commission then has no influence on these negotiations. The first purchase contracts are expected before the summer.
Russian companies excluded from the program
Russian-owned or controlled companies are excluded from the program, according to the Commission. The requests to register gas requirements are to be made every two months over the next twelve months.
Companies from the 27 EU member states and some other countries can register their gas requirements until May 2nd. Suppliers can then submit offers.