BAKU, Azerbaijan, February 28. The European Commission concluded its first tender for a new mid-term gas purchasing product under the EU Energy Platform, Trend reports via the Commission.
The tender, which closed last night, garnered substantial interest, attracting offers totaling 97.4 billion cubic metres (bcm) of gas to meet the demand of European consumers.
Utilizing the AggregateEU mechanism, the Commission efficiently collected 34 bcm of gas demand from 19 companies in the preceding week. However, the offers received vastly exceeded the demand, with supplies nearly tripling the collected gas demand.
Buyers participating in this inaugural mid-term tender had the opportunity to submit gas demand for multiple 6-month periods, spanning up to a maximum of 5 years, from April 2024 to October 2029. This novel mid-term tender represents a pioneering service introduced by the Commission under the AggregateEU instrument. Its primary objective is to establish stability and predictability in gas supplies, transcending the short-term crises experienced during the past two winters.
By building upon the foundations laid by the crisis mechanism implemented in 2023, this new product aims to provide participating companies with assurance regarding their gas supply needs in the years to come.
Looking ahead, the European Commission anticipates conducting further tenders throughout the year, encompassing both short and mid-term arrangements, to meet the evolving demands of the European gas market.
Follow the author on X: @Lyaman_Zeyn