By Sama Marwan,
European Union (EU) member states are considering granting the bloc’s regulatory arm the authority to set more flexible gas storage targets in case fuel prices surge due to market speculation or manipulation.
The proposed changes to the EU’s storage regulation include a provision that would require the European Commission to adjust the planned storage deviation by up to five percentage points above the 90% storage target. This measure could be implemented for a single filling season “if unfavorable market conditions persist,” according to a proposal drafted by Poland, which was reviewed by Bloomberg News and shared with other EU countries on Friday evening.
According to Bloomberg, the Commission introduced the regulation in early March, which is currently under discussion by all 27 EU member states. The aim is to extend the 90% gas storage target through 2026 and 2027. Some countries have demanded that the new regulation also cover the 2025 storage target, but the latest draft does not accommodate these requests.
The extension of the EU’s gas storage targets, originally implemented during the energy crisis following the Russia-Ukraine war, is intended to ensure energy security during harsh winters. However, some member states argue that the strict storage requirements could contribute to market speculation, as traders anticipate large gas purchases ahead of storage deadlines.
A combination of colder weather, reduced wind power generation, and the loss of Russian gas supplies via Ukraine has led to a faster depletion of gas reserves across the region this year. The uncertainty surrounding EU policy has created instability in the gas market just as storage refilling is set to begin on April 1. This has driven up gas prices and widened the gap between summer and winter contracts, potentially slowing down the storage process.
During recent negotiation rounds, EU member states have discussed adjustments to increase flexibility and lower the cost of replenishing reserves. The proposed changes already include:
- Replacing the November 1 deadline with a broader window from October 1 to December 1.
- Allowing a deviation of up to five percentage points per country from gas storage targets over the next two years if market prices make storage costs excessively high.
The gas storage regulation is currently being debated simultaneously by the EU Council and the European Parliament. Each institution has the right to propose its own amendments, and the final version will be determined in a trilateral negotiation that includes the European Commission as well.
