Joint gas procurement is one of several crisis measures the European Commission is proposing in its new energy package on Tuesday. – We know that we are strong together. That is why we want to operationalize joint purchasing, said Commission President Ursula von der Leyen at a press conference. The Commission’s proposal is that the EU countries coordinate their gas needs and look for offers on the market that can meet the overall demand. “Companies are given permission to form a European consortium for gas procurement, in accordance with EU competition rules,” the commission writes in its proposal. Must avoid outbidding each other The aim is to fill the gas stocks for the next winter season. At least 15 per cent of the degree of filling in the member states’ gas storages must be jointly covered, the proposal states. The idea is that the EU can use its combined purchasing power to negotiate better gas agreements on behalf of smaller member states and small companies, in addition to avoiding member states outbidding each other on the gas market. – We know that Europe’s energy needs are very large. Instead of outbidding each other, member states and energy companies should strengthen each other’s purchasing power, Von der Leyen said. Expecting a tough winter The EU is in for a tough winter, but it could be even worse next year, the commission warned on Tuesday. If Russia cuts gas supplies completely, Europe will lack up to 100 billion cubic meters of gas every year until 2025, the commission concludes. Russia currently accounts for 9 percent of the EU’s gas consumption. Norway has taken over as the largest gas supplier to Europe. Oil and Energy Minister Terje Aasland (Ap). Photo: Lise Åserud / NTB Oil and Energy Minister Terje Aasland (Ap) tells NTB that it is natural for the EU to look at gas measures, but at the same time warns the EU against introducing measures that have unintended consequences and, in the worst case, contribute to worsening the situation. – From the Norwegian side, we are concerned that when assessing measures, one looks at measures that solve the main problem; lack of gas and power. – Norway is a large and reliable energy supplier to Europe and is in regular dialogue with the EU on energy issues. The most important thing we can do is deliver as much gas as possible every day, he says. Equinor pending Equinor is now Europe’s largest supplier of gas, after Russia went to energy war against its former largest gas customer. During the war against Ukraine, Russia has throttled the supply of gas to the continent. – We fully understand that various proposals for measures are being considered to remedy the effect of the high energy prices for industry and households, says Equinor’s spokesperson Magnus Frantzen Eidsvold to news. He says that the intention behind the proposed measures is good, and that it will be exciting to follow how they can be implemented in practice. – But we are also keen to convey that the measures that are now being proposed do nothing to address the fundamental challenge, which is a lack of energy. That is why we are waiting a bit for the effect of the proposals that have now been launched, he points out. Does not propose a price ceiling The commission does not propose to introduce a price ceiling for gas, as several member states have demanded. The Støre government has repeatedly warned the EU against a gas price cap. However, the Commission does not completely close the door to setting a maximum price for gas used in the production of electricity. The so-called Iberian model has helped to bring down prices in Spain and Portugal and “deserves to be considered at EU level”, the proposal says. Will push down the gas price The Commission is proposing a number of measures which together will stabilize the gas market and push down prices: Develop a new reference price for LNG (liquefied natural gas) on the Dutch gas exchange (TTF) by March 2023. The sky-high gas prices on the TTF exchange will be stabilized through a separate crisis mechanism that is activated when needed. The aim is to avoid excessively high prices and large price fluctuations. A separate mechanism must also be introduced to stabilize prices on the day-to-day market. In addition, the commission will give the member states more leeway to support energy companies that are struggling with liquidity. The European Commission’s energy package will be discussed when the member states’ heads of state and government gather for a summit on Thursday and Friday.
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The European Commission proposes to establish a cartel for gas purchases – news Urix – Foreign news and documentaries
