EU Opens Tool For Joint Gas Purchases

The European union officially opened its tool, AggregateEU, for joint gas purchases on Tuesday for companies to start submitting their gas-demand projections for June 2023 – May 2024 period.

• AggregateEU aims to use the EU’s collective market power to negotiate better prices with international suppliers, which will be particularly valuable to smaller entities or those in landlocked countries, the EC said.
• After the data are aggregated and analyzed and potential sellers submit their offers, both sides can see best matches and complete deals on their own or via special agents. That is expected after May 17.
• It remains to be seen if major buyers will use the mechanism and how big the collective buying might be. Following the first tender, the EU plans to organize more joint purchases every two months mandating that governments pool demand for 15% of their storage-filling obligations. That target equates to roughly 13bcm this year.
• “The more participants we have, the higher the chances of finding attractive gas deals,” EU Commission Vice-President Maros Sefcovic said.