EU Nations Weigh Flexibility in Gas Storage Targets Amidst Rising Prices

EU countries are considering a proposal that allows deviation from the 90% gas storage target before winter if prices rise due to market conditions. The plan faces resistance over concerns that fixed deadlines inflate gas prices. Nations like Germany, France, and the Netherlands seek more flexible targets.

European Union countries are currently engaged in discussions around a significant proposal that permits deviation from the bloc's rigorous gas storage targets if financial feasibility becomes problematic, according to a negotiation document seen by Reuters.

The European Commission has put forth a proposition to extend binding deadlines for gas storage through 2026 and 2027. However, resistance has surfaced from several governments concerned about potential gas price inflation as a result of fixed purchasing deadlines. A draft document, disclosed to Reuters, suggests countries may deviate by up to 5% from the 90% storage target under unfavorable market conditions.

This draft follows previous reports of suggested flexibilities, including removing the fixed November 1 deadline and allowing storage targets to apply at any point from October 1 to December 1. Countries such as Germany, France, and the Netherlands are apprehensive that strict deadlines signal the market to raise prices, thus seeking adjustments. These proposals emerged after Russia's reduced gas deliveries prompted the EU to ensure ample winter reserves. Poland, holding the EU's rotating presidency, spearheads ongoing negotiations, with further adaptations expected on storage policies.

(With inputs from agencies.)