European agreement reached on mandatory gas reserves for supply crises | European Union News

Gas reserves must be filled to 80% by November 1, increasing to 90% from 2023 until 2025.

Negotiators from the European Parliament and the 27 member states of the European Union have agreed on new regulations concerning mandatory levels of gas reserves in the EU.

Gas reserves must be filled to 80% by November 1, rising to 90% from 2023 until the regulation expires on December 31, 2025, the European Council, the body of the European Union, announced on Thursday. EU representing member states, in a statement.

The European Commission proposed the rules in March, amid supply concerns over the war in Ukraine and Russian threats to cut gas supplies, confirmed after Moscow cut off supplies to Poland and Bulgaria .

The Commission and EU member states must review reserve levels throughout the year with waived charges on transmission costs to incentivize suppliers to store gas despite high prices.

The negotiators also agreed on licenses allowing operators to regulate their energy security obligations.

If this is compromised by an underfill of reserves, the license can be revoked and the company forced to lose control or ownership of the storage facilities.

EU Member States can also meet storage obligations with stocks of liquefied natural gas (LNG).

Exemptions

Cyprus, Malta and Ireland have obtained exemptions from the regulations as long as they are not directly connected to the gas storage systems of other states.

EU Member States that do not have storage facilities can access reserves from other Member States and share the costs.

Allowances must be made for EU countries with large storage facilities that they do not fully utilize themselves.

The European Parliament and EU members must now adopt the regulations before they come into force, but this is considered a formality.