Record in Brussels: Gas auction receives offers for more than 13,400 million cubic meters

Inspenet, May 16, 2023

The European Commission has received offers to supply a total volume of more than 13.4 billion cubic meters of gas in its first joint purchase auction, a figure that exceeds the aggregate demand of 11.6 billion cubic meters from European companies.

A week after announcing this first tender, the European Commissioner for Interinstitutional Relations, Maros Sefcovic, has highlighted this positive market reaction as an “extraordinary success”.

“It shows that we did well to pool our demand, use the collective power of attraction of Europe and work together to fill our gas tanks for next winter,” he said, before thanking the 25 suppliers who have submitted their offers. and that they have overcome the collective demand of the more than 110 subscribed companies.

1815 Bruselas gas subasta shutterstock interna
Record in Brussels: Gas auction receives offers for more than 13,400 million cubic meters

Prisma facilitates the process: The gas auction in Brussels matches offers and demands efficiently

The service provider Prisma has been in charge of matching the most attractive offers with the demands of the clients until adjusting a global volume of 10,900 million cubic meters, of which liquefied natural gas represents more than 20%, while 80% remaining corresponds to the gas pipe.

Thus, the offers cover 18 of the 21 virtual commercial points of gas by pipeline and the two virtual points of liquefied natural gas: north and south.

Sefcovic has also stressed that the adaptation in the most vulnerable countries is especially positive, since the gas deliveries requested by Bulgaria have been fully adjusted, while in Ukraine and Moldova 100% and 80% of the deliveries have been matched. requested volumes, respectively.

The volumes have been matched through the ‘AggregateEU’ mechanism, designed ‘ad hoc’ to find compatibilities between the aggregate demand for gas from EU companies with the supply offers from suppliers around the world in order to increase the security of energy supply and coping with rising gas prices following Russia’s attack on Ukraine.

Once the platform has matched the demand of the applicants with the offers of the suppliers, they will negotiate the conditions of the supply and delivery contracts, in which the Commission will have no role.

“This is a great result for an instrument that did not exist some five months ago”, stressed the commissioner, who reiterated that AggregateEU has become a “new and dynamic market for buyers and sellers of gas in Europe”.

The second round of demand aggregation and bidding is expected to launch in the second half of June, followed by another three auctions before the end of the year.

Source :

Photos : Shutter Stock

Don’t miss the Inspenet News at:

Related news

Share this news on your social networks