The European Commission is set to initiate a process for European companies to jointly purchase natural gas supplies, marking the first step toward the establishment of a buyers’ cartel in an effort to drive down prices.
According to a statement issued by the European Commission on Tuesday, the joint gas purchases will be made through an AggregateEU mechanism, which will allow the bloc to prepare for the upcoming winter by refilling its gas storage in a coordinated and timely manner while also leveraging its collective market power to negotiate better prices with international suppliers.
Registered companies must respond to the first demand aggregation call by May 2.
Following the submission of individual company needs, the required gas quantities will be aggregated and put up for bid on the international market.
Once the AggregateEU mechanism matches the collective European demand with offers from international gas suppliers, the participating companies will enter into negotiations with suppliers on a contractual basis for gas purchases and deliveries.
The first purchase contracts are expected to be signed before the summer, after which tenders will be carried out every two months over the next 12-month period.
A total of 76 companies have so far registered for the mechanism, and an additional 11 companies are ready to provide services as a central buyer or an agent on behalf of the buyers.
EU countries initially aim to purchase a minimum of 15% of their national gas storage targets, representing around 13.5 billion cubic meters of gas per year.
