gas- Photo Naftogaz of Ukraine
(BRUSSELS) – The EU Commission launched Tuesday a process for European companies to register their gas purchase needs via the AggregateEU mechanism, to prepare for the joint purchasing of gas at EU level.
This is seen as a key milestone for the EU to prepare for next winter by refilling its gas storage in a coordinated and timely manner, using its collective market power to negotiate better prices with international suppliers.
“By allowing EU companies to pool gas demand together, AggregateEU will leverage the Union economic weight and help us ensure sufficient gas in our storage to get through next winter safely,” said EC vice-president Maros Sefcovic.
Registered companies have one week, until 2 May, to respond to this first call for demand aggregation. After the individual companies’ demands have been submitted, the required volumes will be aggregated and put out to tender on the global market. Once the AggregateEU mechanism matches the collective European demand with offers from international gas suppliers, the participating companies will enter into negotiations with suppliers on the contractual terms for the purchase and delivery of the gas. The Commission will not play any role in the negotiations. The first purchase agreements are expected before the summer.
Further tenders will be carried out on a regular basis, every two months over the next 12-month period. The possibility for companies to subscribe to the AggregateEU mechanism remains open. So far, 76 companies have registered, while others are in the process of subscribing. In addition, 11 companies are ready to provide services as a Central Buyer or an Agent on Behalf (see guide below).
Member States have committed to participate in demand aggregation for a minimum of 15% of their national gas storage targets, representing around 13.5 billion cubic metres of gas per year. The gas storage and joint gas purchasing targets were agreed in 2022 as emergency measures to respond to Russia’s weaponisation of its energy supplies, and to the unprecedented energy prices since the Russian invasion of Ukraine. They aim to reduce price volatility, ensure secure and predictable energy supplies, and harness Europe’s collective market weight. To deliver on the REPowerEU Plan and diversify the EU’s energy supplies, Russian gas is excluded from joint purchasing.
Joint gas purchasing: AggregateEU mechanism to increase energy security for Europe - guide
