Jorgensen to prioritise ending Russian gas imports as new Commission takes office

LONDON (ICIS)–Denmark’s Dan Jorgensen will prioritise ending Russian LNG imports and lowering energy prices when he takes up the post of EU energy commissioner on 1 December, Ursula von der Leyen confirmed on 27 November.

The European Parliament narrowly approved Von der Leyen’s new college of commissioners in a vote on 27 November, and the European Council of EU leaders formally endorsed the new Commission on 28 November, clearing it to start work.

Von der Leyen told the European Parliament the that the outgoing Commission had done much to respond to surging energy prices that followed Russia’s invasion of Ukraine, but that “the price of energy is structurally still too high and has to go down”.

She said Jorgensen’s previous experience – he was Denmark’s energy and climate minister from 2019 to 2022 – would help in this work.

However, industry players have questioned whether the stated goal of ceasing all Russian gas imports is compatible with lowering prices.

Torben Brabo, former international director at Danish gas and power transmission system operator Energinet and former president of Gas Infrastructure Europe, told ICIS it was key that Jorgensen used the word ‘independent’ when asked about the subject in his confirmation hearing.

“For me, there are huge differences between being independent of Russian gas and [having] no Russian gas,” Brabo said.

While over-reliance on Russian supply had been naïve, Brabo said, the molecules remained the cheapest available, while ending all supply also required the added costs of maintaining overcapacity to import other sources.

“Let’s say we have 5-10% of our gas supply coming from Russia, with the option of more. Then we would have cheaper gas – and cheaper energy costs for end-users. We could probably use the bargaining [chip] on all the other imports, and thereby get even cheaper gas from them, and we could probably rely on a slightly smaller gas system in total or repurpose for hydrogen or other green gasses,” Brabo said.

The European Commission has a stated aim of ending Russian gas imports by 2027, but Jorgensen said in his hearing he aimed to accelerate this process.

WELL-QUALIFIED FOR COMMISSIONER

Brabo was positive about Jorgensen’s prospects for the commissioner role, citing success in Denmark with industrial climate partnerships and Denmark’s first of its kind binding climate law.

The partnerships forced stakeholders in 13 different sectors into implementation mode.

“Instead of just being pro the government or in opposition, they were actually put in the driver’s seat, because they should make a recipe for how the government could help them,” he explained.

Jorgensen’s time as minister also required ideological flexibility to support the end goal of decarbonisation, with the Baltic Pipe between Norway and Poland a good example.

While the massive fossil infrastructure was not on the government’s agenda, Energinet was asked to make a plan and Poland bought 80% of the capacity for 15 years, helping Poland shift from coal to a more stable, secure gas supply.

“Even though that [Jorgensen] would rather have seen money go for green investments, he was supportive on this objective mechanism, respecting the neighbouring countries and their needs,” Brabo said.

NUCLEAR VIEWS

Jorgensen was also drawn repeatedly on the topic of nuclear power during his hearing. He said he supported countries right to choose their power mix but also didn’t believe it was for the EU to fund construction of nuclear plants.

Teresa Ribera, who as the Commission’s executive vice-president for a clean, just and competitive transition will oversee Jorgensen’s work, broadly sidestepped questions about support for nuclear during her own confirmation hearing on 12 November.

“I think he has mainly been playing on his own half of the sports arena in the past … It will be interesting to see how he needs to not only stand in the very green Danish goal, but he needs to stand in the middle of the arena, looking at all possibilities,” said Brabo.

FOLLOW THROUGH NEEDED

Jorgensen’s ability to implement is a question mark. Alongside the affordable energy plan, part of the clean industrial deal due, as well as a plan to exit Russia gas within the Commission’s first 100 days. An electrification action plan will follow in due course, and he needs to help ensure the large volume of Green Deal legislation for the previous five years is implemented.

Jorgensen’s successor in Denmark was told to focus on implementation, Brabo said, with fewer new targets.

“And now [Jorgensen’s] come to the Commission in a larger scale, invited to do this second stage, which will be interesting,” he said.