Sources say that most EU countries support softer storage targets for gas

In a meeting held behind closed doors on Wednesday, a majority of European Union member countries supported plans to relax some of the bloc’s binding gas storage targets when they were extended until 2026-2027. EU diplomats confirmed this.

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 are required to purchase large volumes of fuel within fixed deadlines, it created an opportunity to manipulate the prices.

The European Commission's proposal to extend the deadline for the binding targets up until 2027 did not ease these concerns, even though the EU executive said it would be more lenient with the enforcement of the targets this year.

The EU's targets include the requirement to fill storage caverns with gas to 90% capacity by November 1. Each year. There are also a number of intermediate targets to be met in the months preceding November.

EU diplomats said that at a meeting on Wednesday of diplomats from EU member countries, the majority agreed to make these intermediate goals voluntary in future.

Diplomats also said that countries agreed to consider making possible changes to the November deadline.

The Commission said that it would be more lenient when enforcing the target for this year and will take into account gas market conditions in weighing actions against countries who miss the November target.

The EU countries are getting ready to negotiate with the European parliament and approve an extension of the target. This will give them the chance to change the rules.

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. Mark Potter (Editing)

(source: Reuters)