The EU plans to enter the global gas market next month, seeking to use its joint buying leverage to drive down gas prices. The joint gas purchase is a new tool being deployed by the EU to limit a surge in energy costs caused by disruptions in Russian gas supplies following the Russia-Ukraine conflict. Although European gas and electricity prices have fallen sharply from record highs last August, they are still driving up consumer inflation and undermining the competitiveness of European companies.
According to Maros Sefcovic, vice-president of the European Commission, preliminary estimates show that the common gas demand of the 27 EU member states and three neighbouring countries in the next three years is 24 billion cubic metres. After launching tenders in April, the EU expects to sign its first contracts around June with suppliers from the US, the Middle East and Africa.
On the supply side, Maros Sefcovic noted that more than 50 companies around the world are interested in partnering with Europe through the energy platform. After the first tender, the EU will regularly organise more joint purchases to ensure that the EU has enough gas.