European Union continues joint gas purchases, Russian gas cannot be bought this way

The European Union will open another round of joint natural gas purchases on 21 September this year. This will be the third round of such purchases, which were launched following the outbreak of the energy crisis and the start of the war in Ukraine. 

Although the energy crisis has eased significantly since last year and natural gas storage facilities are filled to the required 90% well ahead of the statutory deadline, the European Union will organise a third joint purchase of natural gas.

Through joint purchases, interested parties in the first round entered into negotiations with suppliers on contracts for nearly 11 bn cubic metres of natural gas, and in the second round for 1 bn cubic metres more.

The aim of joint purchases is to coordinate negotiations between European Union member states and external suppliers so that they do not compete with one another and thereby drive up prices for each other. Another benefit may be the EU's influence, which could lead to better terms for buyers.

Joint purchases work by first inviting interested European companies seeking natural gas supplies to register. Only then can gas suppliers register, after which offers and demand are matched. The European Union merely provides a space for demand and supply to meet, but does not take part in the commercial negotiations that subsequently take place between companies.

While participation in the auctions is not compulsory for individual participants registered in the system, EU member states must ensure that buyers request at least 15% of the total volume of natural gas that the respective member state is required to store before winter.

Joint purchases take place on the PRISMA (AggregateEU) electronic platform. Companies from both inside and outside the EU can participate as suppliers. However, Russian companies cannot register.

The largest suppliers from Czechia also took part in the joint purchases. As reported by Ekonomický deník, ČEZ, MND and Pražská plynárenská responded to the call in the first round.