Document reveals EU countries' draft plan to relax gas storage targets
A document seen by revealed that European Union nations are considering making the bloc’s binding gas storage targets more flexible. They do this because they fear the rules could lead to an increase in gas prices.
Germany, France, and the Netherlands warned that the EU's deadlines for filling gas storage were pushing prices up. By indicating to the markets that European buyers were obliged to purchase large volumes of fuel within fixed deadlines, it created an opportunity to manipulate the prices.
The EU member states are currently negotiating any changes to the goals. Last week, the European Commission proposed to keep the binding targets through 2027. However, EU countries and the European Parliament may amend the proposal. The final rules must be approved by the European Parliament and EU member states.
The draft proposal circulated late Friday among EU member states and was seen by by. It showed that countries were considering changing EU requirements to fill storage tanks to 90% capacity by November 1 every year. Instead, there could be a time range between Oct. 1, and Dec. 1,
In addition, the proposal would make voluntary a series of EU intermediate targets for filling gas storage caverns during the months preceding November.
Next week, diplomats from EU member states will discuss the proposal and possibly consider other changes to the rules. Poland, the current rotating EU presidency and chair of negotiations between EU member states, prepared the negotiating proposal. The representatives of the EU did not respond immediately to a comment request.
The Commission said that it would be lenient with the November target for gas storage this year, but this hasn't calmed down governments who are worried about having to pay a high bill if gas prices spike.
Gas storage goals were implemented in 2022, after Russia cut deliveries. This was to ensure EU countries have a buffer during winter months, when heating demand is at its peak. Reporting by Kate Abnett. (Editing by Philip Blenkinsop, Mark Potter and Mark Potter).
(source: Reuters)
