European Council agrees negotiating mandate on EU gas storage regulation changes

The European Council has agreed its negotiating mandate to extend gas storage rules by two years and provide additional flexibility to member states, with the proposed changes expected to take effect in May 2025, it said April 11.

In a statement, the council said EU member states' representatives had approved its position on the planned gas storage amendments, with the presidency set to begin talks with the European Parliament on the final shape of the law next month.

"The council agreed to extend gas storage rules by two years while providing additional flexibilities for member states to adapt to constantly evolving market conditions and to address possible market manipulations," The Council said.

The proposal to extend the gas storage measures to 2027 would reduce the EU's exposure to volatile prices, namely due to the current geopolitical instability, it added.

Its mandate would include a continuation of the 90% gas storage fill target for EU countries, a measure it noted would "help improve energy security and gas market stability" until a potential EU-wide framework on energy security was established in the coming years.

Once a provisional agreement is reached between the co-legislators, it will be formally endorsed by both institutions before being published and entering into force, according to the council.

It comes after a tumultuous first quarter for European gas prices, with the end of the Russia-Ukraine transit deal prompting two-year highs for prices at the Dutch TTF gas hub.

Platts, part of S&P Global Commodity Insights, assessed the Dutch TTF month-ahead price at Eur58.13/MWh on Feb. 10, its highest level since February 2023.

Prices have taken a bearish turn in recent weeks on the back of geopolitical tensions and the imposition of global tariffs.

Platts assessed the Dutch TTF month-ahead price at Eur33.34/MWh on April 10, down 1% on the day and its lowest level since September 2024.

Proposed amendments

The council's mandate also introduced a series of changes to the EU's gas storage regulation that sought to allow additional flexibilities for member states.

"This would help them react swiftly to constantly changing conditions and to take advantage of the best purchasing conditions, while ensuring security of gas supply and the correct functioning of the internal market," the council said.

Of note, the existing 90% storage target should be reached "anytime between Oct. 1 and Dec. 1 instead of the current Nov. 1 deadline."

Intermediary targets for member states, which require storage tanks to be filled to certain levels in February, May, July and September, would be indicative, the council added.

In case of unfavorable market conditions, including market manipulations, member states could deviate up to 10% from the filling target, while the commission may increase this deviation with a delegated act if such conditions persist.

Finally, should gas production of a member state exceed the average annual consumption over the preceding two years, or in the event of slow injection rates of storage facilities with a capacity over 40 TWh, member states may deviate by up to 5% from the filling target.

This deviation could be used so long as it did not negatively impact the functioning of the internal gas market, or the ability of directly connected member states to supply gas to customers, it said.