Joint gas supply is one of several crisis measures that the European Commission is proposing in its new energy package on Tuesday.
– We know we’re strong together. That is why we want to make joint procurement operational, Commission President Ursula von der Leyen said at a press conference.
The Commission’s proposal is for EU countries to coordinate their gas needs and look for offers on the market that can meet overall demand.
“Companies are allowed to form a European gas supply consortium, in accordance with EU competition rules,” writes the Commission in its proposal.
He must avoid overcoming each other
The goal is to replenish gas supplies for the next winter season.
At least 15 per cent of the filling degree of Member States’ gas deposits must be covered jointly, the proposal states.
The idea is that the EU can use its combined purchasing power to negotiate better gas deals on behalf of smaller member states and small businesses, as well as prevent member states from hovering each other on the gas market. .
– We know that Europe’s energy needs are very large. Instead of outdoing each other, member states and energy companies should strengthen each other’s purchasing power, Von der Leyen said.
Expect a harsh winter
The EU is facing a difficult winter, but it could be even worse next year, warns the Commission.
If Russia cuts gas supplies completely, Europe will be short of up to 100 billion cubic meters of gas per year until 2025, the Commission concludes.
Russia currently accounts for 9% of EU gas consumption. Norway has become the largest gas supplier in Europe.
The Minister of Oil and Energy 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, they contribute to worsening the situation.
– On the Norwegian side, we are concerned that when evaluating measures, they look at measures that solve the main problem; lack of gas and light.
– Norway is a large and reliable energy supplier to Europe and regularly talks with the EU on energy issues. The most important thing we can do is provide as much gas as possible every day, she says.
It does not suggest the maximum price
Even at this stage, the Commission does not propose to introduce a price ceiling for gas, as several Member States have requested. The government of Støre hhas repeatedly warned the EU against a cap on the price of gas.
However, the Commission does not completely close the door to setting a maximum price for gas used in electricity generation.
The so-called Iberian model has helped bring prices down in Spain and Portugal and “deserves to be considered at EU level,” says the proposal.
It will lower the price of gas
The commission proposes a series of measures that together will stabilize the gas market and reduce prices:
- Develop a new reference price for LNG (liquefied natural gas) on the Dutch gas exchange (TTF) by March 2023.
- The skyrocketing gas prices on the TTF exchange need to be stabilized through a separate crisis mechanism that is activated when needed.
- The aim is to avoid excessively high prices and sharp price fluctuations.
- A separate mechanism should also be introduced to stabilize prices on the daily market.
Furthermore, the Commission will give Member States more leeway to support energy companies struggling with liquidity.
The European Commission’s energy package will be discussed when the heads of state and government of the member states meet for a summit on Thursday and Friday.
