The EU plans to launch a tender for the joint purchase of gas next month

EU countries plan to launch the first tender for the joint purchase of natural gas on the ACER energy platform next month, Bloomberg reports with reference to European Commission Vice President Maros Šefčovych.

According to initial estimates, the combined demand for the purchase of 27 countries of the bloc and three neighboring countries amounts to 24 bcm over the next three years, Šefčovych reports. After announcing the tender in April, the EU expects the first contracts with suppliers from the U.S. to the Middle East and Africa to be signed around June.

Joint gas purchases are a new tool the EU plans to use to limit spikes in energy prices caused by a cut in Russian supplies following Russia's invasion of Ukraine.

The EU will open registration on the energy platform for companies interested in buying gas on March 15, and a few days later will announce a tender for so-called central buyers and agents. Buyers will aggregate demand, look for the best offer from suppliers and conclude contracts. Agents will help negotiate agreements between suppliers and final consumers, and will also offer ancillary services, such as gas transportation.

"In April, we plan to open a window on the platform, where companies will officially present how much gas they wish to purchase through the first tender," Shefcovych said. According to him, the main advantage is that with the help of this mechanism, a large market is opened for small and medium-sized companies, which otherwise would not be able to buy part of LNG cargoes or connect with large energy companies.

As for the proposal, according to Šefković, more than 50 companies from all over the world are interested in interacting with Europe through the energy platform. After the first tender, the EU will organize additional joint purchases on a regular basis to ensure sufficient gas for the block.

As reported, Ukraine also plans to participate in the joint purchase of gas with EU countries. It is expected that Ukraine will be able to purchase 2 bcm of gas.