European Parliament proposes more flexible rules for filling gas storage facilities

The European Parliament is proposing reducing the target filling level for storage facilities to 83% while also extending the deadline for meeting this requirement. The debate over the role of gas storage facilities is therefore continuing. 

The European Parliament is responding to concerns among member states about the current rules for filling gas storage facilities, which were introduced in 2022 after Russia’s invasion of Ukraine.Under the current regulation, EU member states must fill their gas storage facilities to 90% of capacity by 1 November each year.

According to some countries, including Germany and the Netherlands, however, this requirement has driven up gas prices by signalling to the market that purchases must be made by a set deadline.In response to these concerns, the European Parliament’s Committee on Industry, Research and Energy (ITRE) approved a proposal to lower the target filling level for storage facilities to 83%, with the target achievable at any point between 1 October and 1 December.In addition, member states could deviate from this target by up to four percentage points in the event of adverse market conditions, such as high gas prices.However, the minimum filling level before winter should not fall below 75% of capacity.

A path to greater flexibility

European storage facilities have been filling faster in recent days in response to the price of natural gas falling below EUR 40/MWh. The pace of storage filling in relation to wholesale market prices may be a good indicator of traders’ expectations for future natural gas prices.

The proposal marks a shift from strict regulation towards greater flexibility, which should help ease pressure on gas prices and allow member states to respond better to current market conditions.The changes are expected to apply to the targets for 2026 and 2027, with the 2025 target also subject to adjustment if the changes are approved in time.

The proposal is now awaiting a vote in the European Parliament’s plenary, which will be followed by negotiations with member states on the final rules. The European Parliament will vote on the proposal during its plenary session in Strasbourg from 5 to 8 May.

In Czechia, storage facilities remain less than 40% full, although, following the European trend, they are gradually being filled, with a larger increase expected as warmer weather approaches.