Page 10 - EurOil Week 12 2023

EurOil POLICY EurOil

EU leaders to urge companies to take

part in joint gas purchases this week

EU EU leaders may urge companies this week to peak. The Commission is already planning to
participate in a scheme for the joint purchase of extend a voluntary target to reduce winter gas
The focus is preparation gas, according to draft conclusions for a summit demand by 15% – a target that so far has been
for next winter. in Brussels that were seen by Reuters. surpassed.
The documents note that Europe’s energy European Commission President Ursula von
security, hard hit by Russia’s significant reduc- der Leyen confirmed on March 17 that Norway’s
tions in pipeline gas supply to the continent over Equinor would take part in the joint gas procure-
the last year, has improved, but they stress the ment scheme. She stressed that the aim was to
need for preparations to be made for next winter. agree more long-term contracts for gas supply.
Europe was spared from gas supply shortages Equinor CEO Anders Opedal told Reuters last
in the 2022-23 winter thanks to mild weather, week that there was “a lot of interest” on the buy-
ample LNG supply and demand reduction and ers’ side for these long-term contracts.
destruction. But Brussels wants to see member Though not an EU member, Ukraine has
states co-ordinate their purchases of gas for fill- also said it will take part in joint gas purchases,
ing storage facilities over the coming months. with the hope of securing 2bn cubic metres of
Fortunately, gas storage utilisation is cur- supply for its own needs. Ukrainian energy sup-
rently at an historic high for the time of the year, ply has been significantly disrupted by Russian
with GIE data estimating that facilities across the strikes, and Kyiv hopes that participation in
EU are currently at nearly 56% of capacity. the EU scheme can stave off gas shortages. Of
The council of EU leaders “calls on all stake- the 27.3 bcm of gas that Ukraine consumed in
holders involved to make full use of the joint 2021, domestic output accounted for 19.8 bcm
purchasing mechanism,” the draft stated. In the and imports 2.6 bcm. A further 4.9 bcm was
documents, EU leaders also asked the European extracted from storage. Ukrainian production
Commission “where necessary” to make pro- dropped to 18 bcm in 2022, according to pre-
posals to extend emergency measures that were liminary data released by state-owned Nafto-
agreed last year when the energy crisis was at its gaz. ™

P10 www. NEWSBASE .com Week 12 22•March•2023