Brussels wants to extend the pre-winter gas storage target by two years

The European Commission (EC) has proposed extending the European Union’s target for filling gas storage facilities ahead of winter by two years, despite concerns from some countries that these targets push up gas prices. The Commission announced the proposal on its website today. However, it must be discussed and approved by EU member states and the European Parliament.

The Commission said it favours maintaining the target of filling EU gas storage facilities to 90 percent of capacity by 1 November each year, along with a series of interim targets in the months before November through 2027. The 1 November target would remain binding, while the targets for earlier months would be indicative only, and therefore non-binding.

Gas storage filling targets were introduced in 2022, when Russia cut gas supplies. The targets are intended to ensure that EU countries have fuel reserves in storage during the winter months, when demand for gas for heating peaks.

Reuters noted that disagreements over the targets have emerged in recent months. Some countries, including Germany and the Netherlands, have urged the EU to ease its strict deadlines. They also want to seek greater flexibility in the upcoming negotiations with EU lawmakers on the final form of the targets. These countries say that the EU’s fixed targets signal to the market that European buyers must make purchases, pushing up gas prices and leaving countries with large storage facilities facing high bills.

EU benchmark gas prices rose in February to a two-year high of close to 60 euros (1500 Kč) per megawatt-hour (MWh). This morning, they were trading above 43 euros per MWh.