2023-05-17 05:32:18
The joint gas purchasing platform, which aims to match European gas demand with the best offers, has registered offers totaling 10.9 billion cubic meters, almost fulfilling the legal obligation imposed, the Commission announced. European Tuesday (May 16).
Under the Gas Storage Regulation, EU member states are required to fill 15% of their storage capacity, i.e. 13.5 billion cubic meters of gasthrough the platform.
The first call for tenders has already made it possible to respond to European demand, thanks to offers representing nearly 11 billion cubic meters, liquefied natural gas (LNG) representing just over 20% and gas transported by pipeline a just under 80% of this amount.
“It is nothing less than a remarkable success”said Maroš Šefčovič, the European Commission’s Vice-President for Interinstitutional Relations, who is also responsible for overseeing the platform.
« [Ces résultats] show that we were right to pool our request […] and work together to fill our gas stocks for next winter”he specified.
The platform was set up to ensure Europe’s energy security ahead of winter as well as to bring prices down, given supply constraints and dwindling imports of cheap gas from Russia.
“We believe we are also contributing to the trend we are currently seeing in the gas market, which clearly shows that prices are falling and more competitive for European customers”and declared by M. Šefčovič.
By aggregating European demand, Brussels seeks to increase Europe’s purchasing power in tight international markets, which particularly benefits smaller countries.
“Pooling is particularly positive in the most vulnerable countries. For example, gas deliveries requested by Bulgaria have been fully met. In Ukraine and Moldova, 100% and 80% of the requested volumes have been cleared respectively”and indicated by M. Šefčovič.
“It’s an excellent result for an instrument that didn’t exist five months ago”he added.
Supply exceeds demand
According to Mr. Šefčovič, the platform has become a new “dynamic marketplace” for gas in Europe. It will strengthen its energy security as the continent seeks to phase out Russian supplies.
The platform currently has more than 110 companies representing gas operators and industrial consumers from across the EU as well as countries and regions such as Ukraine, Moldova and the Western Balkans, members of the Energy Communitywhich includes the EU and several neighboring states.
Supply even exceeded demand, as 25 suppliers offered a total of 13.4 billion cubic meters in response to the tender for 11.6 billion cubic meters. Some offers were not accepted, due to oversupply and higher quality of some offers, Šefčovič explained.
Buyers and suppliers will now exit the platform to finalize contracts, which is expected to take place in the second half of June.
However, the contracts are not yet guaranteed and the companies responsible for ensuring the supply are free to withdraw if they find a better offer.
The EU must maintain its efforts
Despite this success, Mr Šefčovič warned that the EU should not rest on its laurels, adding that the war in Ukraine continues and that Europe “cannot be satisfied” current energy prices.
Europe still needs to procure at least 2.6 billion cubic meters of gas to meet the legal obligation under the storage regulation. To this end, four other tender procedures will be launched before the end of the year.
Šefčovič told reporters that he would continue to solicit international gas suppliers to attract more supply offers in the next rounds of tenders. The European Commission, for example, has met representatives of Azerbaijan regarding the gas supply, although the EU’s relations with the country have been criticized by groups defense of human rights.
[Édité par Anne-Sophie Gayet]
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