The EU will propose joint gas purchases in response to high energy prices

The European Commission will propose to the European Union (EU) countries a system for joint gas procurement and the creation of strategic fuel stocks in response to soaring energy prices. This is stated in a document sent by the Commission to bloc members before the end of the week. Gas prices in Europe rose to record highs in October due to limited supply and high demand in global economies recovering from the Covid-19 pandemic. Gas prices have fallen from these peaks in the meantime, but have risen again in recent weeks due to cold winter weather and lower-than-expected imports from Russia. Rising energy prices have led governments to cut subsidies and tax breaks to protect consumers from high energy bills. At the same time, some countries have called for a joint gas purchasing system in the European Union. The Commission's proposal to update EU gas market rules on Wednesday includes the creation of such a system. "The proposals will include a framework for the joint procurement of strategic gas stocks by regulated entities on a voluntary basis," the Commission said in a document sent to member states ahead of Thursday's EU leaders' summit. The system will be part of "coordinated emergency measures across the Union", the document continues. The document does not set out how the joint procurement system will work in practice, but says it is part of Brussels' pressure to strengthen gas storage systems in the EU. Under this proposal, Member States could thus rely on gas supplies in other countries, if necessary, through cooperation at regional level. Storage will become part of the assessment of security of gas supply in EU countries, including risks related to foreign ownership of storage infrastructure, the document states.