Gas storage: refill flexibility to bring down prices
- MEPs want to reduce national filling targets to ease tensions in the gas market
- 83% storage filling obligation
- Flexibility without compromising energy security
- EP calls for full embargo on Russian gas
The draft law adopted on Thursday seeks to address speculation on the gas market and bring down prices, by introducing greater flexibility in rules on gas storage refilling.
With 425 votes in favour, 106 against and 43 abstentions, Parliament has approved the Commission proposal to extend the EU’s 2022 gas storage scheme until 31 December 2027, 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 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
MEPs propose reducing the filling target from 90% to 83%, to be met at any point in time between 1 October and 1 December each year. Member states would be allowed to deviate by up to four percentage points from the filling target in the event of unfavourable market conditions, such as supply disruptions or high demand. The Commission may further increase this deviation by up to an additional four percentage points if these market conditions persist.
Member states would however have to ensure that the cumulative effects of flexibilities and derogations do not bring down overall storage filling obligations below 75%, MEPs say.
Full embargo on Russian gas "both necessary and feasible"
MEPs say that in light of Russia's ongoing war against Ukraine, member states should refrain from storing gas of Russian origin. The European Union should also, they say, pursue immediate sanctions on Russian gas imports, including LNG. A full embargo is both necessary and feasible, they add.
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"It's very important that Europe was able to protect its citizens in a situation where Russia was using gas as a weapon of blackmail" rapporteur Borys Budka (EPP, Poland) said during the debate. Parliament wants to “provide for more flexibility and less bureaucracy but above all to bring Europe’s gas prices down" he added.
Next steps
MEPs will now enter into negotiations with the Polish presidency of the Council. A first round of talks is scheduled for 13 May.
Background
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.
Contacts:
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Baptiste CHATAIN
Press Officer