The EU announced the creation of a “cartel of buyers” of gas
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The EU next month plans to create a platform where businesses and governments can form a “buyer’s cartel” to buy gas from global suppliers. declared Vice President of the European Commission Maros Sefcovic in an interview with Bloomberg.
Šefcovic expects the first deals through the European Energy Platform to close around June to help fill storage ahead of the next heating season. The agency notes that this initiative was elusive for a long time, but the emergence of a “cartel of buyers” became possible due to the rejection of Russian energy resources and trade confrontation with China.
The energy crisis in Western countries is caused by a reduction in Russian energy supplies to Europe, as well as sanctions against the Russian Federation in the energy sector. The EU authorities have repeatedly recognized that Europe is in for a difficult winter of 2022-2023. At the same time, they do not plan to lift the sanctions, explaining the problems that have arisen at the cost of Europe’s independence from Russia and its energy resources.
On December 19, 2022, the EU countries agreed on a gas price ceiling of €180 per MWh, which corresponds to $1,975 per 1,000 cubic meters. m. As part of the European gas market correction mechanism, it began to operate on February 15, 2023.
It is assumed that the ceiling will be activated if the price of TTF gas exceeds the agreed level, and the spread to the price of liquefied natural gas (LNG) in the EU will be more than 35 euros per 1 MWh. However, the ceiling will not apply to OTC transactions.
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