One-third of current imports are to be replaced with US LPG. The deal presented by US President Joe Biden and Commission President Ursula von der Leyen envisages that this year alone, the EU will buy an additional 15 billion cubic meters of liquefied natural gas (LNG).
Yesterday, opinions on the European Commission’s proposal to jointly purchase gas also differed for a long time. Until now, purchases have been made by companies, not states.
But things should be different now: “I am delighted to use our collective negotiating power,” Commission President Ursula von der Leyen said after the Friday night summit. “Instead of breaking through each other and raising prices, we’re going to combine our demand.”
It is doubtful, however, whether all countries will actually join it. The German Chancellor, Scholz, argued that this step was voluntary. Private companies will continue to buy gas in the future, Scholz said.
No price limits
The discussions were also tense about how to contain the rise in gas prices. Spain and Portugal may introduce a price cap on energy costs with a time limit. Austria, the Netherlands and Germany reject such a measure. Better for the free market to regulate it, they said. You can then imagine the compensation payments.
Countries and the Commission now wish to discuss with energy stakeholders whether and how, inter alia, price caps or tax breaks could help lower the price of gas and combat its “contagion effect” on electricity markets.
At the same time, heads of state and government are asking the Commission for proposals to tackle the problem of high electricity prices, protect the integrity of the internal market and create incentives for the energy transition.