The European Union is strengthening its approach to end its long-standing crisis dependence on Russian gas. In response to the military occupation of Ukraine, European nations built a protective shield to reduce imports from Russia by seeking alternative suppliers, increasing storage, and cutting consumption. Now a new joint gas intake system is moving forward.
Member states must participate in the European mechanism with a minimum gas contribution by year end. Each country is required to ensure its companies contribute to the joint procurement system with the equivalent of 15% of the mandatory filling level, which corresponds to 90% of the capacity of their gas storage, or about 14% of total capacity, to be ready for the upcoming winter. For Spain, this means adding a total of 4.8 terawatt hours (TWh) of gas to the community supply by year end.
Each country chooses how to guarantee compliance with the Brussels-set minimum. Some states, like Poland, designate a list of companies that must channel part of their gas supply through the European common purchasing system. Spain excludes forced participation by certain companies and large industrial groups, yet Spanish authorities will participate in the joint procurement mechanism and establish the legal obligations involved.
Dozens of Spanish companies collaborate with the EU to bolster the anti-Putin shield through joint gas purchases
In practice, participation is voluntary for many companies. They maintain direct contact with the country’s gas trading firms and major industrial buyers who express interest in making joint purchases, without creating formal legal obligations to meet the 15% of 90% storage capacity requirement.
The first auction is scheduled for May
The EU will activate the joint gas purchases mechanism this week to host the first tender in May. The European Commission has launched a digital platform named AggregateAB to connect buyers and sellers, align gas purchase requests with offers, provide initial supply-demand matching, and then negotiate specific price terms.
The Commission is conducting informational road shows in the capitals of the Twenty-Seven to explain the process to participating firms. Last week a session took place in Spain, with more than seventy Spanish companies from energy and industry taking part. In Spain, participating national companies include both potential buyers (marketers and manufacturers) and sellers (energy groups that will resell gas through the community mechanism).
Brussels will allow European companies interested in joint purchases to post gas offers and requests on the platform from April 25 to May 2, after which the first auction will occur next month. The process will repeat every two months through July of next year.
Russian gas removal from the system
The main aim is to reduce Russian gas imports across Europe by diversifying suppliers, with a focus on increasing purchases from the United States, Algeria, Azerbaijan, and Norway.
Spain accelerates gas resale to new partners amid the crisis
The new community mechanism bars participation by any company with ties to Russia. Ultimately, purchases and sales of Russian gas will be vetoed. The system will help facilitate medium-term supply contracts by matching bids and requests for periods of one to twelve months, partially offsetting market volatility and influencing consumption and prices in the broader gas market.
All of Spain’s regasification plants play a role
With all of Spain’s regasification facilities included as entry points for marketed gas, the country is positioned to play a significant part in the new mechanism. Spain hosts a substantial network of six regasification plants, representing about a third of EU capacity.
The energy crisis is reshaping Spain’s position as a major energy buyer and re-export hub amid the disruptions caused by the Russian invasion. Riverbank notes that gas exports from Spain reached 73,186 GWh, up 88% since the war began, with shipments by ship and pipeline to other countries. European buyers remain the primary market, intensifying the share of sales over the past year compared with 2021.