Remarks by Vice-President Šefčovič on the results of the first joint EU gas purchasing tender
“Check against delivery”
Last week, I stood here to announce the launch of the first tender for joint gas purchasing at EU level, under the EU Energy Platform.
Today, I am truly pleased to announce the positive reaction that we had from the market.
Reliable international suppliers have responded to our aggregated demand of some 11.6 billion cubic metres of gas with bids to supply a total volume of more than 13.4 billion cubic metres.
This is nothing short of a remarkable success. It shows that we were right to pool our demand, to use Europe’s collective pulling power, and to work together to fill our gas storages for next winter.
I want to thank all 25 suppliers who have submitted their offers – surpassing our collective demand.
Our service provider Prisma has matched the most attractive offers with customer demands. To be precise, an overall volume of 10.9 billion cubic metres have been matched.
Out of this volume, LNG represents more than 20% and the remaining almost 80% covers pipeline gas.
The bids cover 18 out of the 21 virtual trading points for pipeline gas and both virtual LNG points, north and south.
The matching in the most vulnerable countries is particularly positive.
For instance, the gas deliveries requested by Bulgaria have been fully matched. In Ukraine and Moldova, 100% and 80% of the volumes requested have been matched, respectively.
Once again, this is a great outcome for an instrument that did not exist some five months ago.
I therefore reiterate that AggregateEU has become a new, dynamic marketplace for buyers and sellers of gas in Europe – designed to reinforce our energy security, as we phase out Russian gas, and fit for the needs of market operators in Europe.
That is why we have more than 110 companies subscribed to the AggregateEU mechanism and more companies subscribe every day. These companies cover all regions of the EU as well as some Energy Community countries, and represent all types of gas operators and industrial gas consumers.
Now, what are the next steps?
All participants are being informed about the result of the matching exercise and will be able to start contractual negotiations.
As you know, this part happens outside of the Aggregate EU mechanism – without any involvement by the Commission or Prisma.
The Commission has played its role as aggregator and matchmaker, and now it is for the respective parties to conclude their agreements.
In the second half of June, we envisage to launch the second round of demand aggregation and tendering. And three more rounds will follow before the end of this year.
Meanwhile, my team and I will continue outreach to international gas suppliers to attract more of them for future rounds. I believe this is an opportunity for them to expand their customers’ base. And it is a win-win for all parties.
Next week, I will host a virtual Steering Board, composed of high-level representatives from Member States as well as Energy Community countries, where we will discuss these results and our way forward.