BRUSSELS – The European Union’s Energy Commissioner has urged member states to take early action to fill gas storage facilities, aiming to preempt supply competition that could drive up prices during the summer as the bloc seeks to contain the fallout from the war in Iran.
اضافة اعلان
In a letter seen by Bloomberg News, Dan Jørgensen wrote that governments should also lower gas storage targets to 80%, while making full use of the flexibility provided by the EU’s legislative framework.
Member states have the option to deviate from this target by 10 percentage points, with an additional margin of up to five percentage points in the event of unfavorable market conditions. The EU has set December 1 as the deadline for meeting gas storage obligations.
"Security of supply remains relatively protected at this stage, due to limited reliance on imports from this region, as well as LNG shipments that crossed the Strait of Hormuz before the conflict broke out," Jørgensen stated in his letter to member states.
He added: "However, as a net energy importer in global markets, global price volatility and spikes could also impact the pace of gas injection into EU storage."
The letter, previously reported by the Financial Times, follows recent Iranian attacks targeting Liquefied Natural Gas (LNG) production facilities in Qatar. Estimates suggest that repair work could take up to five years.
Despite the EU’s limited dependence on Middle Eastern gas supplies, it faces intensifying competition in global markets alongside rising domestic gas prices in Europe, according to Bloomberg.
