EU greenlights gas storage regulation amendments to boost energy security

Representatives of EU member states, under the Committee of Permanent Representatives (Coreper), have approved the Council's position on amendments to the gas storage regulation.

The decision includes a two-year extension of the existing gas storage rules, with added flexibilities for member states to adjust to fluctuating market conditions and combat potential market manipulations, Caliber.Az reports via the message posted on the website of the European Council. 

This newly agreed position will serve as the basis for negotiations between the Council and the European Parliament to finalize the law. The European Commission proposed the extension of the existing obligation for member states to ensure that their gas storage facilities are filled to 90 per cent capacity before the winter season.

This extension aims to enhance market predictability and transparency while reducing the EU's exposure to volatile energy prices, especially in light of the current geopolitical uncertainties. The measure also supports energy security and stability in the gas market until an EU-wide energy security framework can be fully established in the coming years. 

Key changes introduced by the Council's mandate include:

The binding target of 90 per cent gas storage capacity must now be met between October 1 and December 1, instead of the previous deadline of November 1. The intermediary storage targets set for February, May, July, and September are now indicative, offering more flexibility for market participants while ensuring sufficient storage and predictability throughout the year. 

Member states will be allowed to deviate from the storage target by up to 10 per cent in cases of unfavorable market conditions, such as potential market manipulations. The Commission could extend this deviation with a delegated act in persistent adverse market situations. 

In cases where national gas production exceeds the average consumption of the last two years or when storage facilities with capacities above 40 TWh have slow injection rates, member states may deviate by up to 5 per cent from the target. However, this flexibility cannot harm the functioning of the internal gas market or the ability of connected member states to supply gas to protected customers. Negotiations on the new regulation are expected to begin in May once the European Parliament has voted on its mandate. 

After provisional agreement between the Council and Parliament, the regulation will be formally endorsed and published, entering into force thereafter. Since the establishment of gas storage targets in 2022, Europe’s energy security has strengthened, particularly in the wake of the energy crisis triggered by Russia's war against Ukraine.

While the current gas storage obligations are set to expire at the end of 2025, the ongoing tightness in the global gas market underscores the need for an extension of these provisions beyond that time. Gas storage facilities currently account for 30 per cent of the EU's gas consumption during winter months, and well-maintained storage can offer additional supplies in the event of high demand or disruptions in supply.

By Naila Huseynova