EU launches joint fuel buying to secure winter energy

The European Union has rolled out a project in which companies can make joint gas purchases in hopes of ensuring the continent can stockpile enough fuel to avoid another energy crisis like it had last year, when prices reached record highs. 

The project – which does not involve Russian gas – includes 80 companies throughout Europe that can work together to register how much gas they will buy.

The EU, a political and economic union of 27 member states located primarily in Europe, will then gather offers from natural gas suppliers worldwide to match the required demand. From there, contracts will be negotiated and companies will reach a deal, the wire service also reports.

The project is expected to involve nearly 14 billion cubic metres of gas, which is far from the 360 billion needed to meet demand, but it is nonetheless a start for countries to be better prepared for winter. It is also designed to hopefully lower energy costs, a crisis that has been plaguing the continent for years. 

Europe is home to some of the highest natural gas prices in the world, with gas costs at one point surging by 540% and 790% in Germany and France respectively. Euronews reported the continents energy inflation hit a record high amid the Russia-Ukraine war.

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