EU seeks flexibility in gas storage targets

European Union member states are seeking changes to rules about gas storage targets. They want to allow some flexibility in meeting these targets over the next two years if high market prices make refilling gas reserves too costly. Poland, which currently leads the EU in meetings, has drafted amendments proposing that each member country can deviate from their storage targets by up to 5 percentage points under “unfavorable” market conditions. This plan will be discussed at an upcoming energy officials' meeting on March 27. The storage targets aim for 90% capacity, as proposed by the European Commission, and are set to extend until 2026 and 2027. Last week, Poland also suggested changing the deadline for filling gas reserves from November 1 to between October 1 and December 1. This change comes amid rising gas prices due to increased demand and lower supply. Factors such as cold weather and reduced wind power have led to faster depletion of gas stocks this year. Concerns about replenishing reserves are driving up prices and creating a wider gap between summer and winter gas contracts. A recent meeting on Wednesday saw discussions about increasing the flexibility to meet storage targets even further, potentially lowering the goal from 90% to 80%. Poland hopes to finalize the amendments in the upcoming revisions. These storage regulations were introduced during the energy crisis triggered by Russia's invasion of Ukraine, aimed at ensuring EU countries have enough gas for winter. However, worries about filling reserves have intensified as the region has lost some reliable gas sources. The gas storage regulations are being reviewed by both the EU Council and the European Parliament, with each body having the opportunity to suggest changes. Final agreements will be achieved through negotiations involving all parties.