EU launches first medium-term joint gas procurement

The European Commission has launched the first medium-term joint procurement of natural gas through the AggregateEU platform. Buyers will be able to use it to secure natural gas for several six-month periods, starting in April 2024 and ending in October 2029. The Commission announced the move in a press release.

The first medium-term joint procurement of natural gas follows four joint gas procurements carried out last year, which aimed to ensure sufficient gas supplies in the EU for the winter of 2023/2024. The joint procurements ultimately secured 42 billion m3 (just under 450 TWh) of natural gas, equivalent to roughly one eighth of last year's natural gas demand in EU countries.

"To tackle the energy and price crisis triggered by Russia's illegal invasion of Ukraine, we started acting together and pooling our gas demand to secure better deals for European gas consumers on the international market. The new medium-term product we are launching today will provide stability in the years ahead. The worst is probably behind us, but markets remain tight and we need to ensure the highest possible level of security," said European Commission Executive Vice-President Maroš Šefčovič.

The medium-term joint procurement of natural gas was launched on 15 February and will close on 29 February. Buyers interested in purchasing gas could submit their demand until 21 February.

According to the published information, buyers submitted total demand of 34 billion m3, of which 15.3 billion m3 was liquefied natural gas (LNG) and 18.3 billion m3 was pipeline gas.

Natural gas suppliers will be able to respond to this demand with offers from 26 to 27 February. The final results will then be published on 29 February.