Sources say that EU countries are seeking extra flexibility in their gas storage targets

EU diplomats have revealed that the EU is considering rules which would allow countries to deviate from the requirement of 90% gas filling before winter by ten percentage points.

In 2022, the EU introduced its gas storage regulations to provide EU countries with a buffer during the winter months after Russia stopped supplying fuel following its invasion in Ukraine.

Some EU countries worry that the binding storage filling targets will increase gas prices as they indicate to market participants when European purchasers will require large volumes.

Current rules include a mandatory target of filling storage to 90% capacity before November 1. This target will expire at the end this year.

The EU is negotiating a two-year extension of the target date to 2027. They are also negotiating changes that will soften the targets in 2026, 2027 and even 2025 if the countries can reach an agreement quickly.

At a meeting held on Tuesday, EU country diplomats expressed support for a proposal that would allow countries to deviate up to 10 percentage points away from the 90% target for filling in November if "unfavourable" conditions were present.

The proposed changes will allow governments to achieve the 90% target at any time from October 1 to December 1.

Diplomats have said that Germany and France are among the countries who call for the deviation of 10 percentage points.

The European Commission's initial proposal to extend existing binding targets for another two years without any changes has been rejected by member states.

The EU diplomats reported that countries agreed at the meeting held on Tuesday that if the finalised rules were published and implemented before the November target for this year, then the changes would be applicable.

The EU government hopes to have their final position on rules approved by Friday.

According to the latest document of negotiations published by Poland as the rotating EU presidency, the countries also intend to adopt the EU's mandatory intermediate filling target for the months preceding November. Reporting by Kate Abnett. (Editing by Jane Merriman.)

(source: Reuters)