European Union countries are in talks to potentially relax gas storage targets ahead of the winter season, according to EU diplomats speaking with Reuters. These gas storage regulations were established in 2022 when Russia significantly reduced gas deliveries following its invasion of Ukraine. The intent was to ensure that EU nations had adequate reserves during the colder months. The regulations include specific benchmarks for storage levels in February, May, July, and September, culminating in a goal of reaching 90% storage capacity by November 1.
One of the proposed changes for the years 2026 and 2027 involves shifting from a binding November 1 deadline to a more flexible timeframe. This would allow countries to reach the 90% capacity goal anytime between October 1 and December 1, while also making the earlier targets voluntary. If finalized, these adjustments could impact this year’s November 1 target, provided that the modifications are published before that date. However, it is believed that these alterations may not take effect in time to influence the targets for earlier months in this current year.
Next week, EU countries plan to agree on a collective stance on these proposed regulations before entering negotiations with the European Parliament. Document analysis reveals that member states wish to permit a deviation of up to 5 percentage points from the 90% target if market conditions are deemed “unfavourable.” Some nations, such as Germany, are advocating for a greater deviation of 10 percentage points. Initially, the European Commission proposed extending the existing binding targets for an additional two years, but faced pushback from several countries, including Germany, France, and the Netherlands.
Concerns remain that these targets could drive up gas prices by signaling the market about when European buyers need to make significant purchases.