EU member states consider additional flexibility on gas storage regulations

European Union countries are considering additional flexibility surrounding the EU's mandatory gas storage regulations, which could see a 10 percentage point deviation from the current 90% target, according to a European Parliament committee held on April 9.

Speaking at the Committee on Industry Research and Energy Ordinary meeting in Brussels, MEPs put forward amendments surrounding the EU's planned prolongation of its existing gas storage mandate -- set to be extended through 2027.

Against a backdrop of volatile gas prices and an inverted summer-winter price spread, MEPs were critical of the EC's legislative framework surrounding gas storage however, advocating for more "market-based" approaches in incentivizing gas storage fill.

This included the relaxation of storage mandates, more leniency in reporting requirements, and a reduction in the EU's 90% storage fill target.

It comes as European gas prices have exhibited pronounced volatility in recent weeks, driven largely by geopolitical developments and the imposition of global tariffs.

Platts assessed the Dutch TTF month-ahead price at a two-year high of Eur58.13/MWh on Feb. 10.

European gas prices have softened in April, with Platts assessing the TTF month-ahead price at Eur35.885/MWh on April 8. Platts is part of S&P Global Commodity Insights.

EU-wide gas storages reached their lowest level since April 2022 in late March, falling to 33.72% full on March 25.

Despite a marginal uptick in injections through April 2025, storages were recorded at 34.95% full as of the April 7 gas day, compared to a storage fill level of 60.42% on April 7, 2024, data from Gas Infrastructure Europe showed.

"We saw the Q3/Q1 spread collapsed with the EU 10% flexibility [reports]," a Germany-based gas trader said, adding it "makes even more sense to inject."

European gas markets were not yet "back to normal conditions", Borys Budka, MEP and member of Poland's Civic Platform Party said, chairing the committee meeting.

"Global gas demand remains high. Traditional alliances have been shaken, and much work needs to be done to reduce the Union's external energy dependence," Budka said.

In its budget priorities for 2026, released on April 4, the EU would revisit its security of supply framework, considering amendments proposed by member states that aim to bolster EU resilience and preparedness, Budka added.

However, regarding the EU's gas storage regulation, MEPs suggested bringing forward proposed amendments to 2025, citing energy security needs.

Proposed amendments

MEPs noted gas markets had changed since the imposition of gas storage regulations in 2022.

Europe had diversified its gas sources, reduced dependency on Russian gas from 45% to 13%, and succeeded in increasing its share of renewables, according to Andrea Wechsler, member of Germany's EPP party.

"With this progress and European resilience in mind, we have witnessed negative impacts of the regulatory framework," Wechsler said. "The fixation of filling targets, timelines and mandatory intermediary trajectories for gas storage facilities have led to serious market distortions."

Presenting the EPP's amendments, Wechsler called for a "more balanced approach that maintains energy security, while urgently returning to market-based mechanisms."

The proposals targeted an 80% fill rate, instead of 90%, including a flexibility measure of up to 5% in case of "unfavorable market conditions." Additionally, a further 5% was proposed should national gas produced exceed the average annual consumption, or a slow injection rate, Wechsler said.

The EPP suggested a more flexible timeline for filling gas storages, from Oct. 1 to Dec. 1, instead of the rigid Nov. 1 deadline, as well as the removal of the EU's intermediary filling trajectories, which for 2025 are set at 50% fullness as of Feb. 1, and 30% full as of May 1.

Jens Geier, member of the German SDP party, concurred with the 10 percentage point reduction, adding the need for a "high penalization" for non-compliance, as well as an "early warning mechanism" to keep the EC informed.

Against widespread demand destruction within the EU and a significant reduction in gas storage levels through 2024/25, there was a "financial burden" facing EU citizens and companies, according to Erno Scaller-Baross, member of Hungary's Fidesz party.

"If the current regulatory requirements remain unchanged, the refuel this year will cost around Eur10 billion," he said.

However, Schaller-Baross opposed intervention from the EC and the gas regulatory body ACER, noting gas fill responsibilities fell solely to member states. Burden sharing should also be considered, particularly for those countries with large storage facilities.

In its response during the committee hearing, the EC's DG ENER representative said the balance between security of supply and flexibility was paramount.

"To recall where the 90% comes from – it was the average that we've seen gas storage levels in the years before Russia's aggression against Ukraine," the representative said. "We are very much ready to help reach a compromise with the Council during the negotiations."

Market consensus

MEPs were largely in agreement on the amendment of reporting periods surrounding the EU's gas storage regulation, suggesting intermediary targets should be indicative only.

If market conditions were not favorable, a deviation from the target should also be permitted, while a greater use of the EU's AggregateEU joint gas purchasing mechanism could aid gas storage fill requirements, but the mechanism should be made more attractive, Ondreij Krutilek, member of Czech Republic's Civic Democratic Party added.

This comes after Denmark missed the EU's gas storage fill targets last year, despite a one-month extension granted by the European authority.

Some parliament members proposed a storage fill target of 85%, while others agreed a flexible period of around a month to reach the target through October-November was adequate.

There was however sustained support for the EU's current 90% target.

Marie Toussaint, member of France's EELV party, said EU market participants faced two key problems; buying gas at high prices, and gas supply shortages.

Toussaint said the EELV party supported the current 90% mandate, and rejected any deviation in the target "to protect consumers."

Citing testimony from a gas storage operator, Toussaint said the storage regulation "was the only way to ensure our supply, while fulfilling the goal of weening off Russian gas."