Seven EU Countries Push for More Flexibility in Gas Storage Targets
Seven European countries — France, Germany, Italy, Austria, Hungary, Slovakia, and the Netherlands — are calling for a revision of EU gas storage rules, urging policymakers to scale back the current storage target of 90 percent capacity. Under certain conditions, they propose reducing that target to 80 percent, arguing that the higher requirement is forcing the EU to purchase large quantities of gas — much of it from the U.S. — at peak market prices.
“In these turbulent times, and with the ongoing struggle to remain competitive, having more flexibility would certainly be a better solution than adhering rigidly to the existing targets,” said Lithuanian Energy Minister Žygimantas Vaičiūnas.
Vaičiūnas also noted that recent trade tensions, such as tariffs introduced by former U.S. President Donald Trump, could lead to a drop in industrial demand — making it even more difficult for the EU to increase imports of U.S. liquified natural gas (LNG).
Energy Frenemies
The European Union began turning to U.S. LNG three years ago as an alternative to Russian pipeline gas, following Moscow’s full-scale invasion of Ukraine and the subsequent supply cuts to Europe. Since then, American gas has become a key component of Europe’s energy strategy.
This transatlantic energy partnership is only expected to deepen in the near future. As the EU continues efforts to wean itself off Russian energy completely — including gas that was until recently transported via Ukraine — the need for American LNG is likely to grow.
“The EU will have to buy more American gas to make up for lost Russian supplies,” said Laura Page, a senior market analyst at energy intelligence firm Kpler. “If the storage target is reduced, there will be less urgency for Europe to import large volumes of gas during the summer months, which could also help ease prices — ultimately leading to more favorable terms for the EU.”
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