Germany wants EU to relax its gas storage targets

The German ministry of economic affairs and climate said that they are concerned about the cost.

In response to the disruption in supply caused by the Ukraine War, all EU countries must fill their storage caverns up to 90% capacity by November. Intermediate targets are February, May July and September.

This week, benchmark European gas prices reached two-year highs.

A spokesperson from the German ministry of economic affairs and climate said, "We support less strict storage level requirements."

The spokesperson said that "more flexibility can ensure that pressure to fill up all gas storage installations equally decreases, and that market conditions are normalised."

On Thursday, the issue was discussed at a meeting of EU member states and the Commission (the EU executive).

Under condition of anonymity four sources said that Germany, the country with the largest storage caverns, and other countries including France were concerned that the EU targets sent a message to the market that European consumers are forced to buy, which drove up prices.

The Commission is preparing to extend the targets for refilling beyond 2025. The Commission has not publicly stated whether it is willing to be flexible with this year's goals.

Gas Infrastructure Europe's data show that EU gas storage sites were less than half-full this week, due to cold weather and reduced Russian supply. (Reporting and editing by Barbara Lewis; Julia Payne and Kate Abnett)

(source: Reuters)