The European Union launched this Wednesday its first international tender for group purchases of gas, covering the aggregate demand of some 80 European companies, in order to obtain better prices to replenish stocks before the winter of 2023-2024.
This mechanism is part of the measures adopted last year by the Twenty-seven to respond to the energy crisis caused by the rise in gas prices after the Russian invasion of Ukraine and the drastic reduction in Russian gas supplies. “This is a historic step: we are harnessing the collective economic weight of the EU to increase our energy security and fight high gas prices,” said European Commission Vice President Maros Sefcovic.
For this first tender, which covers deliveries scheduled between June 2023 and May 2024, 77 European companies submitted their requests for a total volume of approximately 11.6 billion m3 of gas, including 2.8 of liquefied natural gas (LNG) and 9.6 for pipeline delivery. International gas suppliers, excluding Russia, are now invited to respond to this added demand by submitting their offers before May 15. The best ones will then be sent to client companies for business discussions until the transaction is concluded.
Avoid driving sky-high prices
The Brussels-led platform helps European companies, particularly in energy-intensive industries, “build new business relationships with alternative suppliers” as the EU seeks to shed its dependency on Russian gas, insists Maros Sefcoviv. In particular, it allows small isolated companies to jointly obtain greater visibility and weight in the energy market.
On the other hand, the mechanism “offers international providers the opportunity to expand their customer base,” continued the commissioner, underlining the “strong interest” aroused by the hundred potential registered providers. New tenders will be held every two months until the end of the year, according to Brussels.
According to the regulations finalized in mid-December, EU states must participate in this demand aggregation mechanism of at least 15% of the volumes needed to reach the filling target set by the EU (Europeans must fill 90% of its storage capacity by November). ).
These European “group purchases” should also make it possible to avoid the situation of the summer of 2022, when States and companies launched into the gas market at the same time to fill their stocks, fueling the increase in prices. Companies from the EU, but also from the countries of the “European Energy Community” (Ukraine, Albania, Bosnia, Kosovo, North Macedonia, Georgia, Moldova, Montenegro and Serbia) can participate to add their application.
Source: BFM TV
