EU Considers Joint Purchase of Natural Gas Amid Soaring Energy Prices

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The European Union (EU) is reportedly considering the 'joint purchase' of natural gas as a response to the rapid rise in energy prices.

On the 12th (local time), The Guardian cited EU sources and reported that the European Commission, the EU's executive body, is reviewing a plan to jointly purchase natural gas as a 'strategic reserve' supply.

The Guardian stated that, similar to the joint purchase of COVID-19 vaccines, this would proceed through the voluntary participation of member states.

Since the COVID-19 pandemic, global energy demand has surged, and currently, underground natural gas storage levels across Europe have fallen to their lowest since last winter.

Moreover, due to climate change, even wind power generation has decreased, causing electricity wholesale prices to soar by more than 200% across Europe from the beginning of this year through September.

In response, the European Commission is striving to devise measures to address the sharp rise in energy prices.

On the 6th, Kadri Simson, the European Commissioner for Energy, stated at a European Parliament debate held in Strasbourg, France, "As a short-term response, under EU law, member state governments can provide selective support such as subsidies to citizens at risk of energy poverty and reduce energy taxes."

She added, "Policy measures are also necessary," and announced plans to propose energy market reform measures by the end of this year.

The EU suspects Russia as the cause behind the recent surge in natural gas prices. It is believed that Russia limited supply in the gas market to pressure the approval of the Nord Stream 2 pipeline connecting Germany and Russia.

Regarding this, Russian Foreign Minister Sergey Lavrov denied allegations of artificial supply restrictions in an interview with the BBC, stating that the Russian state-owned gas company Gazprom is drawing on reserves to stabilize the market.

The EU plans to place the issue of soaring energy prices on the agenda at the EU summit scheduled for the 21st-22nd in Brussels, Belgium, but member states hold differing positions.

France and Spain support the preparation of energy market reform plans, including the joint purchase of natural gas.

On the other hand, Hungarian Prime Minister Viktor Orb?n sees fundamental problems with Europe's climate policies.

He argues that the EU's climate change roadmap, the 'Green Deal' policy aiming for carbon neutrality by 2050, is causing the surge in energy prices.

Prime Minister Orb?n stated on local radio that Frans Timmermans, the EU Commissioner for Climate Action, is making Europeans vulnerable to high energy prices, and said, "We have reached an agreement with the Czech Republic and Poland that EU regulations should be withdrawn and EU emergency funds mobilized."

Commissioner Simson responded, "The rise in energy prices does not affect our climate policy," emphasizing that "only the 'Green Deal' policy can provide a sustainable solution to Europe's energy problems."

This content was produced with the assistance of AI translation services.