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EU Plans Further Joint Gas Purchases

On May 22, according to the British Financial Times, the European Union said that after the first attempt to centralize the purchase of natural gas was oversubscribed, the EU will advance its plan to jointly purchase hydrogen and key raw materials.

Several leading energy companies participated in the first round of joint natural gas procurement, and obtained gas from buyers and potential suppliers to meet the demand of 10.9 billion cubic meters, exceeding 80% of the EU’s target of 13.5 billion cubic meters by the end of the year.

It is reported that participants include French energy company Engie, Norwegian state oil company Equinor, etc. Total Energy may also participate.

Some of these groups act as buyers and sellers in different parts of the EU. The EU’s pursuit of joint gas purchases reflects the bloc’s need to secure supplies of the key product and stabilize prices.

Ukraine’s national gas company, Naftogaz, said it had joined the round as a buyer.

Other companies, including Italian oil company Eni, also said they planned to participate in the next round of tenders.

The EU commissioner in charge of the gas platform said the result was “a notable success”, although the amount of gas tendered so far represents only a small fraction of total EU use.