Flexible Gas Storage Filling Targets: EU Extends Gas Regulation Calendar to Secure Winter Supplies
EU will adjust gas storage levels with greater agility
Gear up, Europe! The EU's gas storage regulation now has a little wiggle room in the filling process. In a recent agreement, EU countries and the European Parliament have agreed to extend the gas storage regulation by two years, pushing the deadline to December 31, 2027 [3][4].
Here's the deal: the previous rule of having EU gas storage 90% full by November 1 is now more flexible, allowing for a range from October 1 to December 1 to reach the target [4]. This change aims to reduce market tensions and give participants the freedom to buy cheaper gas throughout the year [4].
The storage regulation, introduced in mid-2022, was designed to safeguard the EU's gas supply. By making these changes, the aim is to decrease the EU's vulnerability to price fluctuations related to geopolitical instability, such as the attack on Ukraine by Russia [4]. This agreement follows a proposal from the EU Commission, and the new rules still need the formal approval of the Parliament and the countries [4].
In addition to extending the regulation, several other modifications have been made to bring more flexibility and reduce market pressure. For starters, once the 90% storage target is reached, countries are no longer obliged to maintain that level steadily until December 1. Instead, they can ease up the pressure and costs associated with strict refill deadlines during the summer months when prices tend to soar [4].
Moreover, there's room for deviation from the 90% target under trying market conditions, leveraging more practical flexibility to curb speculative price surges during refill periods [4]. To improve market clarity and reduce speculation, the updated regulation also demands enhanced transparency, requiring reports on the share of gas originating from Russia [4].
In short, the main alterations in the extended regulation revolve around extending the scheme's duration until the end of 2027 and making the 90% gas storage filling obligation more flexible in timing and conditions to help bring down prices and ease market tensions [3][4].
The EU's community policy on energy has been adjusted to include a more flexible energy policy regarding gas storage fillings, aiming to boost the utilization of renewable-energy sources in the industry by promoting finance investments in energy-efficient solutions. This alignment further aims to reduce the EU's reliance on energy imports from finance vulnerable countries, such as those with fluctuating energy policies.
