EU summit to consider jointly buying gas before winter

European Union leaders are poised to agree on a mechanism to jointly purchase gas, liquefied natural gas and hydrogen ahead of next winter, according to the draft statement quoted by Reuters of a EU summit planned later this week.

“With a view to next winter, Member States and the Commission will urgently... work together on the joint purchase of gas, LNG and hydrogen,” the draft statement said, according to Reuters. The summit is scheduled on March 24-25.

The statement was revealed as oil prices retreated from their near $120 per barrel high on Tuesday.

Russia’s invasion of Ukraine has caused energy prices to soar to record highs and put the EU on a mission to cut Russian gas use this year. European Union members are set to discuss a possible oil embargo on Russian crude during the summit, in response to Moscow’s military offensive in Ukraine.

However, the bloc remains divided about imposing a ban due to the heavy reliance of some countries, such as Germany and Hungary, on Russian oil. Russia supplies 40 percent of EU gas. A decision on a ban requires the approval of all 27-member states of the EU.

Although the EU has said it will help countries kick-start joint gas buying this year, EU storage is currently only at 26 percent of capacity.

The draft summit statement said that EU countries agreed to coordinate measures to fill storage and start doing so “as soon as possible” and aim to propose rules requiring them to fill gas storage to 90 percent ahead of winter each year.

EU leaders at the summit are also expected to consider fresh measures to cushion consumers from soaring energy prices, and find ways to potentially "optimise" the functioning of energy markets.

The European Commission last year proposed a system for its member countries to jointly buy strategic stocks of gas. Countries such as Spain had termed the exercise as a way to provide a buffer against potential supply disruptions.