Draft shows EU members are seeking flexibility in the 90% rule for gas storage.

A document reviewed by revealed that the European Union is discussing a proposal which would allow it to diverge from its target of filling natural gas storage up to 90% before winter if market conditions made this prohibitively costly.

This month, the European Commission proposed to extend EU deadlines for filling gas storage by two years. The new dates are 2026 and 2027. The plan, which EU member states and legislators must approve, is facing resistance from governments who are concerned that the rules will inflate the price of gas.

The draft document, which is being reviewed and discussed by countries this week, allows each country to vary by up to five percentage points the EU target of 90% filling of underground gas storage, "if market conditions do not allow for that to happen".

The member states already have other flexibility measures in place, which have been reported previously. For example, the 90% target no longer has a deadline fixed at November 1.

Instead, countries will need to fill up their storage caverns by 90% between October 1 and December 1.

Germany, France, and the Netherlands worry that the new rules will increase prices by telling the market that European consumers are required to purchase large volumes of gas within a set deadline, which creates an opportunity for price manipulation.

In addition, the countries' proposal would make voluntary the EU intermediate targets for filling gas storage during the months prior to November.

Gas storage goals were implemented in 2022, after Russia cut deliveries following its invasion of Ukraine. This was to ensure EU countries have a buffer during the winter months when heating demand is at its peak.

Poland, currently holding the rotating EU presidency and chairing negotiations between EU member states, prepared the negotiating proposal. The spokesperson for Poland's EU Presidency declined to comment on ongoing negotiations.

After the countries have agreed on their position in the negotiations, which is expected to be completed within a few weeks, they will then negotiate with the European Parliament the final rules for gas storage for 2026-2027.

In the draft document, Poland said it would continue to work on the proposal in order to address issues such as changes in the market and the use low-calorific gases. (Reporting and editing by Christian Schmollinger; Kate Abnett)

(source: Reuters)