On Wednesday, Marosh Shefchovich, vice-president for interinstitutional relations at the European Commission, announced the commission had published its first international tender for the collective purchase of liquified natural gas (LNG), through a new EU mechanism.

The first tendering round will be open through May 15, and will cover gas deliveries between June 2023 and May 2024. 77 EU companies have submitted requests for a total volume of roughly 11.6 billion cubic meters (bcm) of gas.

Demand for the chilled fuel is sitting at around 2.8 bcm according to his statement, with almost 9.6 bcm requested for delivery by pipeline.

Shefchovich said, “This is a historic milestone – because, for the first time ever, we are leveraging the EU’s collective economic weight to increase our energy security and tackle high gas prices.”

It is expected the bloc’s executive wing will launch tenders quarterly, he noted, adding that the response to the first one has been “positive and encouraging.”

He added, “Some 107 companies have so far subscribed to participate in joint gas purchasing via the recently created AggregateEU mechanism, and more companies are in the process of doing so.”

In April, the commission launched the AggregateEU mechanism, which is essentially a new marketplace to trade gas in the region. It is hoped the system will allow members of the bloc to more easily and cheaply access gas supplies to refill gas reserves for the winter, as it increases energy security in the region.

Shefchovich notes that the new system is clearly a win-win for both customers in the EU, as well as the suppliers who offer the fuels. He notes it will also be a boon to the industrial sector, especially energy intensive corporations, who will be able to establish new commercial relations with alternative gas suppliers as the EU attempts to wean its members off Russian energy imports.