This mechanism is part of the measures taken by the twenty-seven countries last year to respond to the energy crisis caused by the rise in gas prices after the Russian-Ukrainian war, and the significant drop in Russian gas supplies.
“This is a historic step: we benefit from the collective economic weight of the European Union to increase our energy security and fight against high gas prices”, declared Maros Sefcovic, Vice-President of the European Commission.
Under the first call for projects, covering deliveries scheduled between June 2023 and May 2024, 77 European companies submitted their requests for a total volume of approximately 11.6 billion cubic meters of gas, including 2.8 billion cubic meters of liquefied natural gas, and 9.6 for pipeline deliveries.
International gas suppliers, with the exception of Russia, have now been asked to respond to this global demand by submitting their offers before May 15.
The best ones will be sent to clients’ companies for business discussions until the deal is closed.
Sefcovic said the Brussels-run platform helps European businesses, particularly in energy-intensive industries, to “build new business relationships with alternative suppliers” as the EU seeks to wean itself off its reliance on gas Russian.
Combined demand allows small isolated companies to benefit from increased visibility and weight in the energy market.
On the other hand, Sivkovic pointed out that the mechanism “allows international suppliers to expand their customer base”, highlighting the “great interest” expressed by around 100 registered potential suppliers.
New offers will be invited every two months until the end of the year, according to Brussels.
According to regulations finalized in mid-December, EU countries participating in this aggregate demand mechanism must have at least 15% of the volumes required to meet the EU fill target (Europeans must fill 90% of their reservoir capacity by November).
This European “collective market” must also make it possible to avoid the situation which prevailed in the summer of 2022, when countries and companies rushed to the gas market at the same time to fill their stocks, which led to an increase prices.
Companies from the European Union, but also companies from the European Energy Community (Ukraine, Albania, Bosnia, Kosovo, North Macedonia, Georgia, Moldova, Montenegro and Serbia) can participate in collective applications.
Read the Latest World News Today on The Eastern Herald.
