Page 14 - EurOil Week 08 2023

EurOil POLICY EurOil

Brussels aims to launch joint gas

purchases by April

EU THE European Commission aims to launch a The front-month TTF contract is currently
mechanism for joint natural gas purchases by trading at around €50 per MWh, or $570 per
Certain large energy April, European Commissioner for Economy 1,000 cubic metres, which is still several times
companies are reluctant Paolo Gentiloni said at a press conference last higher than the historic average for this time of
to take part in the week, warning that there could be supply scarcity year. But only in early December the price was
mechanism. in the coming months. three times higher than that. Europe has benefit-
“Energy prices remain well above the levels ted from an unseasonably warm winter, and its
seen in recent years and may remain volatile, high level of gas in storage – currently at 64% of
while supply shortages might re-emerge in the capacity – has eased fears of shortages.
coming months,” Gentiloni said. “This is why At the end of January the EU appointed gas
we intend to put in place a joint purchasing tool capacity platform Prisma to calculate countries’
no later than the end of this quarter, to support collective demand for gas as part of preparations
the filling of gas storage ahead of the next filling for the launch of joint gas purchases. Prisma
season.” will assess countries’ gas import needs and then
EU member states agreed on a mechanism seek offers from suppliers to match those vol-
for the joint purchase of 13.5bn cubic metres of umes. EU countries are required to make sure
gas during 2023 in December, restricting pur- their respective gas companies participate, with
chases to only non-Russian supplies. the amount of gas to be jointly purchased to be
Members of the European Parliament backed equivalent to 15% of the supply needed to fill
legislation enabling joint gas purchases and countries’ storage facilities to 90% of capacity.
other measures to better safeguard EU energy Some EU officials have noted that certain
supply earlier this month. While spot gas prices large energy companies are reluctant to take
have fallen over the past two months to levels part, however, because they already have the
not seen since late 2021, there are fears that hot clout to negotiate their own gas contracts at rel-
weather this summer and a cold 2023-24 winter atively affordable prices, and fear that Brussels’
could drive prices higher once more. scheme will fail to secure even lower rates. ™

P14 www. NEWSBASE .com Week 08 23•February•2023