European Union countries have reached an agreement to relax gas storage regulations ahead of the winter season, responding to concerns that the current binding rules are contributing to inflated gas prices. The gas storage rules, established in 2022, aimed to ensure that EU nations had sufficient reserves following disruptions in gas supplies from Russia, which led to soaring prices.
During a meeting on Friday, ambassadors from EU member states approved a proposal that allows countries to deviate by 10 percentage points from the requirement to fill gas storage to 90% capacity before winter, particularly in unfavorable market conditions. While the existing mandate requires countries to achieve this target by November 1, the proposed amendments would extend the deadline to allow compliance between October 1 and December 1.
Negotiations are set to begin in May to finalize these changes with the European Parliament. The new rules would apply to the EU’s filling targets for 2026 and 2027, and they may also modify this year’s November target if approved in time.
Countries like Germany, France, and the Netherlands have expressed concerns that the current rules amplify gas prices by signaling to market participants when large volumes must be purchased. The proposed adjustments would further allow countries to deviate by an additional five percentage points from the 90% target under certain circumstances, such as when technical constraints delay the filling process.
Additionally, countries are advocating for the removal of binding intermediate filling targets leading up to November, making them voluntary instead. Industry group Eurogas emphasizes the importance of finalizing these changes by July, citing uncertainty as a barrier for market operators making informed storage decisions.
Meanwhile, benchmark EU gas prices have dropped significantly since February, reaching near nine-month lows amid various market pressures.