The European Commission confirmed on Thursday (1 January) that the EU’s joint gas purchasing platform is introducing a different concept of mid-term tenders.
As noted by the EU’s executive body in a press release, this change is a response to the “growing demand for stability and predictability from buyers and sellers of natural gas.”
Under such tenders, buyers will be able to submit their demand for seasonal six-month periods (for a minimum of 1,800,000 MWh for LNG and 30,000 for NBP per period), going from April 2024 to October 2029. This is intended to support sellers in identifying buyers who might be interested in a longer trading partnership – that is up to five years.
“The joint purchasing mechanism, which was brought into existence in only a couple of months and under the enormous economic and political pressure of the energy crisis, has undoubtedly been a great success. The market showed great interest in the scheme in all 4 of last year’s tenders and Aggregate EU managed to match buyers and sellers in deals covering more than 42 bcm [billion cubic metres],” said Executive Vice President Maroš Šefčovič.
The first mid-term tender is planned for 15 February 2024. In order to participate, buyers and sellers must already be registered with PRISMA (the service provider) and have a subscription to AggregateEU (any new entities must registered by 12 February 2024). More information is available on the PRSIMA website.
“Looking forward, with buyers and sellers still calling for market predictability, we have managed to prepare and reach an agreement on new legislation that will turn the joint purchase of gas into a permanent instrument. Therefore, we will continue organising the joint purchase of gas on a voluntary basis, while seeking to make it more attractive,” Mr Šefčovič added.
European Commission launches 3rd round of gas purchasing via AggregateEU
Four tendering rounds were organised in 2023 (between April to December) under the joint purchasing platform. These covered 25 delivery points and two LNG virtual points (North-West, and South-East). During these four rounds, more than 54 bcm of gas demand from European companies were aggregated and more than 61 bcm were offered by international suppliers. The platform matched more than 42 bcm to cover European demand.