EU Plans to Ease Gas Storage Rules to Prevent Price Spikes

• Mar 17, 2025

EU member states are considering relaxing gas storage targets to prevent prices from rising sharply before an expected tough year. According to a Reuters report on March 16, the European Union may adjust its current gas storage rules to ease market pressure.

At the end of this winter, EU gas storage tanks are expected to be only 35% full, much lower than last year's 60%. This means Europe will need to refill its reserves quickly over the summer to meet the required 90% storage target by November 1, as per EU regulations. However, concerns are growing that this rush to stockpile gas could lead to price spikes.

Despite efforts to reduce reliance on Russian gas, the EU remains heavily dependent on imports. In 2023, 90% of the EU’s gas supply came from outside sources. While imports from Russia dropped significantly after the 2022 sanctions, the EU still saw a 14% increase in Russian gas imports—mostly in the form of liquefied natural gas (LNG)—in 2024.

Further complicating matters, Ukraine’s decision not to renew its Russian gas transit deal in January 2024 removed 15 billion cubic meters (bcm) from the market. A colder-than-expected winter also led to an extra 10 bcm of gas consumption, creating an overall shortage of 25 bcm. Some experts believe this missing supply matches the capacity of the intact strand of the Nord Stream 1 pipeline, which remains filled with "technical gas" and could be restarted if political agreements were reached.

To avoid excessive price increases, countries like Germany, France, and the Netherlands have raised concerns about the EU’s strict storage deadlines. In response, the European Commission has proposed extending binding storage rules until 2027 but is open to modifications. A draft proposal suggests shifting the deadline for reaching 90% storage capacity from November 1 to a flexible period between October 1 and December 1. The plan also recommends making intermediate storage targets voluntary instead of mandatory.

EU diplomats will discuss the proposed changes this week as part of broader negotiations led by Poland, which currently holds the EU’s rotating presidency. The discussions aim to prevent a repeat of the 2022 energy crisis when gas prices soared tenfold.

The EU first introduced strict gas storage regulations in 2022 following Russia’s sharp reduction in gas deliveries. The goal was to ensure sufficient reserves for winter when demand for heating peaks. However, with energy prices fluctuating and geopolitical challenges affecting supply, EU leaders are looking for ways to maintain stability while avoiding another price surge.