Role of gas storage for securing gas supplies ahead of the winter season

PURPOSE: to extend existing measures regarding gas-storage provisions.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Regulation (EU) 2022/1032 of the Parliament and of the Council was adopted in reaction to the gas-supply crisis and unprecedented price increases caused by the escalation of the Russian military aggression against Ukraine. It amended Regulation (EU) 2017/1938 by introducing a temporary legal framework for measures regarding the filling level of underground storage facilities to strengthen the security of gas supply in the Union, in particular gas supplies to protected customers.

Gas-storage facilities provide for 30% of the Union’s gas consumption during the winter months, and well-filled underground gas-storage facilities contribute substantially to the security of gas supply by providing additional gas in the event of high demand or supply disruptions. The laying down of a mandatory target to ensure that gas-storage facilities are 90% full by 1 November (filling target), with a series of intermediate targets for each Member State in February, May, July and September of the year thereafter (filling trajectory), proved to be fundamental amidst the energy crisis sparked by the weaponisation of Russian gas supplies and invasion of Ukraine.

Despite the substantial improvement of the gas market situation compared to 2022-2023 period, the European gas market remains tight. More intense competition for global LNG supplies can increase Member States exposure to price volatility. The gas price development during the 2024/2025 winter may confirm the trend. In such situation, the role of gas storages remains paramount.

The amendments in Regulation (EU) 2017/1938 on gas storage are set to expire at the end of 2025. The continuing tight situation in the global gas-market calls for an extension of these provisions beyond 2025 to continue providing predictability and transparency in the use of gas-storage facilities across the EU.

CONTENT: it is proposed that all current gas-storage-related provisions of Regulation (EU) 2017/1938 introduced by Regulation (EU) 2022/1032 would remain unchanged. The proposal is limited to extending by two years (until 31 December 2027) the relevant provisions on the filling of gas storage facilities, which provide predictability and transparency as to the use of gas storage facilities across the EU.