EU agrees on loosening gas storage regulations

After concerns were raised that the EU's earlier rules regarding filling gas storage could have led to an increase in energy prices, the EU member states and the EU parliament reached agreement on a loosening of the EU's regulations on filling.

The European Commission announced the agreement on Tuesday.

In 2022, the EU introduced its gas storage regulations to ensure that EU countries have a buffer during winter. This was after Russia had cut off gas deliveries in response to its invasion of Ukraine. The resultant spike in gas prices across Europe caused by this action.

In April, governments supported plans to relax the rules in anticipation of winter. They were concerned that the requirement to fill the storage to 90% by November 1, would inflate prices by telling European buyers they needed to purchase large quantities of gas before this deadline.

This agreement allows EU member states to reach this 90% filling goal at any time between October 1, and December 1, while taking into consideration the beginning of the withdrawal period for member states. After the 90% goal is reached, there should be no requirement to maintain this level until December 1.

In the event of market conditions that are difficult, or if there is evidence of speculative activity, preventing cost-effective filling of storage containers, the EU member states will have the option to deviate up to 10 percentage points from their filling targets.

"For the European Union to prosper, it needs stable energy at affordable prices. Gas storage is essential to our market stability and security of supply. This also protects us against Russia's weaponisation of energy and market manipulation", said EU Energy Commissioner Dan Jorgensen.

He added that "in the current geopolitical environment, this agreement shows the EU's determination to protect its citizens and business from any risk of disruption in supply and price spikes."

(source: Reuters)