Parliament and Council seek bringing down prices of gas

MEPs and the Polish Presidency of the Council reached an informal agreement on Tuesday to extend the EU’s 2022 gas storage scheme until 31 December 2027, as it would otherwise have expired at the end of 2025. The provision is designed to ensure gas supply security ahead of the winter season.

MEPs and Council also introduced several amendments to ease tensions in the gas market, as speculation surrounding the existing mandatory 90% fill rate target by 1 November each year was driving the cost of refilling during the summer.

Refilling flexibilities

The agreed text will allow Member States to achieve the 90% filling target at any point in time between 1 October and 1 December, taking into account the start of the Member States withdrawal period. Once the 90% target is met, it should not be required to maintain that level until 1 December.

Member States should have the possibility to deviate by up to ten percentage points from the filling target in case of difficult market conditions, such as indications of speculation hindering cost-effective storage filling.

The Commission may further increase this deviation by delegated act, for one filling season, if these market conditions persist.

Towards full independence from Russian imports

The competent authority monitoring gas refilling shall also include information on the share of gas originating in the Russian federation being stored in that Member State, in line with the 17 June proposals from the European Commission, which will help in monitoring whether Russian gas is stored in the EU.

Quote

“The 2022 legislation showed that Europe was able to protect its citizens in a situation where Russia was using gas as a weapon of blackmail”, said rapporteur Borys Budka (EPP, Poland). “This revision will provide for more flexibility and less bureaucracy but above all to bring Europe’s gas prices down, while we continue towards energy independence from unreliable suppliers” he said.

Next steps

The informal agreement will be put to a vote in the Industry, Research and Energy committee on the 26th of June.

Background

Gas-storage facilities provide for 30% of the Union’s gas consumption during winter months. The EU’s energy security has been a critical concern in recent years, not least in light of its dependence on non-EU countries for primary energy supplies. The 2022 energy crisis, exacerbated by Russia’s full-scale invasion of Ukraine and the subsequent weaponisation of gas supplies, highlighted the urgent need for additional measures to ensure stable and affordable energy supplies.

In response, the EU introduced new gas storage rules. However, the global gas market remains tight, with increased competition for liquefied natural gas (LNG) supplies and persistent price volatility.

 

More information: European Parliament.