Joint EU gas purchase takes shape as companies can register demand

FILE PHOTO: A gas pipeline is pictured at the new gas import terminal of Norway's company Gassco in Emden, Germany, May 24, 2016. REUTERS/Fabian Bimmer/File Photo

European companies can register their demand for gas from Tuesday to participate in the European Union’s first joint gas purchase, the European Commission announced.

EU countries decided last year to buy gas jointly in an attempt to secure less volatile prices for businesses and to re-fill gas storage facilities.

Wholesale gas prices reached record highs last summer after Russia strongly reduced gas imports to the bloc, and companies then governments raced to find alternative suppliers.

“The energy crisis has taught us that the EU works better when it acts in unity and solidarity,” European Commission Vice-President Maroš Šefčovič said in a statement.

“Pooling demand will leverage the EU’s economic weight and help us ensure sufficient gas in our storage to get through next winter safely,” he added.

Companies from the EU’s 27 member states as well as from Albania, Bosnia-Herzegovina, Kosovo, North Macedonia, Georgia, Moldova, Montenegro, Serbia and Ukraine can register their gas needs on an online platform until May 2.

Global suppliers can then submit offers from May 9. Russian-owned or controlled companies are excluded from the programme, an EU official said.

The official added that participating businesses are not obliged to buy or sell gas through the platform.

Calls for registering gas needs are foreseen to start every two months for the next 12 months.

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