The European Union (EU) is launching a joint gas purchasing mechanism to help countries fill their storage facilities for the upcoming heating season. In addition, thanks to this measure, fuel prices are expected to decrease. In an interview with Reuters, declaration Maros Sefcovic, Vice President of the European Commission.
“We cannot accept the prices we saw last year, or even the current prices, as the new norm. Therefore, the new program aims to improve gas market access for small companies and lower fuel prices for energy-intensive European industries, including fertilizers and steelmaking.”
According to him, more than 60 companies from Europe have already applied for joint gas purchases, and more than 100 organizations have already expressed their desire to become vendors. Therefore, the initial reaction of the market exceeded all expectations.
He added that the first transactions are expected in June-July, and that the EU will not participate in the negotiations between the companies. As a result, according to plans, the auction should be held every two months. Applications are currently from June 2023 to May 2024.
In a press release from the European Commission at the end of April reportedEU countries started the joint gas purchase process to prepare for the winter heating season. This mechanism is called AggregateEU, among other things it is necessary to save on the purchase of energy resources.