EU’s latest joint gas buying round near three-times over-subscribed, Commission says By Reuters

BRUSSELS (Reuters) – The European Union’s latest tender to buy gas jointly has received offers from international firms to supply nearly three times the volumes being sought for purchase, the European Commission said on Wednesday.

The tender, launched earlier this month, has attracted offers from international suppliers to sell 97.4 billion cubic metres (bcm) of gas to 19 European buying companies which had asked for 34 bcm, the Commission said in a statement.

Buyers had sought around 15 bcm of liquefied and 18 bcm in pipeline deliveries.

The EU launched the joint purchasing mechanism for its member countries last year, one of many emergency measures adopted in the middle of a major energy crisis caused by the war in Ukraine that lead Russia to slash deliveries to Europe.

The latest tender was the first in which companies could seek gas for longer-term deliveries, out to October 2029.

EU Executive Vice-President Maros Sefcovic said the large volume of supply offers was “remarkable” and showed the EU system had become a functioning marketplace for gas – including among industrial buyers in Europe.

Despite initial scepticism from industry sources over whether companies would use the scheme, the EU matched buyers seeking 42 bcm of gas with suppliers last year – far beyond the 13.5 bcm Brussels had initially aimed to purchase jointly.

However, it is not clear how much of that demand has been translated into firm contracts. The EU matches gas buyers and sellers, but is not involved in the commercial negotiations that follow – and companies are not obliged to disclose when they sign deals.

The EU is in the process of passing legislation that will make the joint gas buying scheme permanent – giving EU companies an ongoing option to buy fuel jointly.

The joint gas buying scheme cannot purchase Russian gas.