The decision was made at a summit in Brussels as Germany unveiled targets for rapidly reducing its dependence on Russian energy and the US presented plans to divert gas to Europe. Western allies are stepping up efforts to reshape global energy markets and punish Moscow for the war in Ukraine. “Instead of bidding on each other and raising prices, we will concentrate our purchasing power,” said Ursula von der Leyen, president of the European Commission. However, analysts have questioned whether the 27-member bloc is large enough to dictate the international price of gas. The system will be voluntary. The commission will also look at how to reform the electricity market, a key demand of many countries. Electricity prices are generally determined by the price of gas, the most expensive fuel needed to meet demand. It will submit proposals by May, which could also include measures such as price caps, which are opposed by Germany, the Netherlands and others. Von der Leyen said Spain and Portugal could intervene to reduce energy prices immediately after a tough campaign by their governments. Pedro Sanchez, the Spanish prime minister, fought successfully for the possibility of reducing prices, after at some point he left the summit hall, causing a half-hour pause. The two countries argue that they are largely cut off from the wider EU energy market with few connections to France, so their actions will not affect prices elsewhere. “We can implement great measures to reduce prices for our consumers and companies,” Sanchez said. As Europe seeks alternative suppliers, the United States has said it will seek to deliver at least 15 billion cubic meters (bcm) of additional liquefied natural gas to the EU this year along with other producers, an announcement came on the second day of the US presidency. Joe Biden’s trip to Europe.

Berlin has pledged to all but weaning off Russian gas by mid-2024 and said it aims to become “virtually independent” of Russian oil by the end of this year. The energy supply targets announced by German Economy Minister Robert Habeck highlighted how Europe’s largest economy is becoming central to efforts to reduce exposure to Russia despite concerns about the negative impact on consumers. Habeck said the country could be “independent of Russian gas by all but a small portion” as early as the summer of 2024. A ministry document said it was possible to reduce Russian gas to just 10 percent of consumption. until that moment. The ministry said it would halve its dependence on Russian oil by the end of the summer and close it by the end of 2022. He added that Germany also aims to end its need for Russian coal by the end of the summer. autumn of this year. Von der Leyen said the US commitment to LNG, which was confirmed by a Financial Times report on Thursday, would reach 50 bcm a year in a few years. The EU received about 22 bcm from the US last year. The EU is rushing to phase out its dependence on Russian gas, oil and coal as soon as possible, with Brussels aiming to cut Russian gas imports by two-thirds by the end of the year.

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Energy is the essential business in the world and the Energy Source is its newsletter. Every Tuesday and Thursday, directly to your inbox, the Energy Source brings you basically new, predictive analytics and insider information. Register here. “These steps will increase energy security, financial security and national security,” Biden said on Friday. “I know that eliminating Russian gas will come at a cost to Europe. But it’s not just morally correct. will put us on a much stronger strategic footing. ” In Germany, Habeck said the country was in the final stages of negotiations to secure three floating refueling storage units – ships that could convert LNG to gas again. Power companies Uniper and RWE had options to use the plants on behalf of the German government, he said. The ministry said the three plants would supply 27 bcm of gas a year. Since Russia’s invasion of Ukraine, Habek said, the government has reduced its dependence on Russian coal imports from 50 to 25 percent, oil imports from 35 to 25 percent and gas from 55 to 40 percent. This story has been modified to reflect the fact that the German Ministry of Economy incorrectly stated the unit of measurement for the capacity of the regasification units