EU Reforms Gas Storage Strategy

In a significant policy shift aimed at stabilizing energy prices, the European Parliament and the Polish Presidency of the Council have reached an agreement to extend the EU’s gas storage scheme until the end of 2027. The move comes as part of broader efforts to introduce flexibility in gas storage refilling rules, which are expected to alleviate market speculation and reduce costs.

The new legislation allows Member States to fulfill the 90% storage target at any time between October 1 and December 1, differing from the previous mandate to achieve this by November 1. This change provides a buffer for countries to manage storage levels according to market conditions, with the possibility of deviating up to ten percentage points from the target in challenging market scenarios. The European Commission may also permit further flexibility if market volatility persists.

A key aspect of the agreement involves increased transparency concerning the origin of stored gas, specifically concerning Russian imports. This measure aligns with the EU’s ongoing strategy to reduce dependency on Russian energy, a priority underscored by recent geopolitical tensions and the 2022 energy crisis.

The revised rules will undergo a vote in the Industry, Research, and Energy committee on June 26. These gas-storage facilities play a crucial role, supplying 30% of the Union’s winter gas consumption, and the updated legislation aims to ensure stable and affordable energy access for EU citizens.