HomeMediaMedia PublicationsAnalyticsGas common fund: EU intends to create a strategic fuel reserve

Gas common fund: EU intends to create a strategic fuel reserve

16 December 2021

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department
Тип: Analytics

Marcel Salikhov, President of the Institute for Energy and Finance, in an interview with Izvestia commented on the initiative of the European Commission to create a mechanism for joint purchases of strategic gas reserves.

As Marcel Salikhov noted, the main point of the proposals is, first of all, in bargaining with suppliers and demonstrating unity.

- The main idea of ​​joint gas purchases for UGS facilities is to strengthen the bargaining position of European buyers in relation to large suppliers. Consolidation of purchases of individual buyers, which is possible now, will achieve better conditions and, possibly, lower prices.

According to him, the implementation of the proposals is unlikely to radically change the gas market of the European Union and neighboring countries.

- It may be possible to achieve some discounts, but the program will not fundamentally change the situation on the gas market. Strong volatility in the market is associated with global factors, including an increase in the share of liquefied natural gas, a change in the structure of the electricity market, an increase in the share of renewable energy sources, and the like. Consolidation of purchases will not be able to influence this in any way.

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