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The EU announcement is here: there is no stopping, the EU success program continues to spin

Several leading energy players participated in the first round of joint gas purchases, as a result of which 10.9 billion cubic meters of gas were purchased. This value covers more than 80 percent of the EU’s year-end target of 13.5 billion cubic meters.

Brussels’ joint gas procurement reflects efforts to ensure the supply of critical products and stabilize prices through cooperation between states. Gas prices skyrocketed last summer after Russia launched a full-scale invasion of Ukraine and then halted pipeline exports in response to European sanctions.

Already in the first round, we were greatly affected by the aggregated demand, and especially by the fact that the offered gas ended up being oversupplied

– said Maros Šefčovič, EU Commissioner responsible for joint procurement. In the end, the suppliers offered a total of 18.7 billion cubic meters, but not all quantities were sold.

The purpose of the gas platform was to coordinate demand in the hope that contracting for larger volumes would depress prices.

Encouraged by the success of the current joint procurement the European Union has again put forward its joint procurement plan for critical minerals for green technologieswhich was first proposed back in March.

According to Šefčovič, the gas program would serve as a “blueprint” for critical raw materials, as well as hydrogen “new market” which would help to decarbonize energy-intensive industries and ensure stability. He added that several companies from the Middle East have shown interest in transporting hydrogen.

The cover image is an illustration. Cover image source: Getty Images