European Union Energy Commissioner Dan Jørgensen has urged member states to avoid aggressively restocking gas reserves, citing a severely constrained market and escalating prices. In a letter to energy ministers, Jørgensen proposed lowering the official target for gas storage to 80 percent, and extending the deadline for achieving it to December 1st, a month later than previously mandated.
The move comes amid growing fears that a rush to meet stringent storage targets will further inflate European gas prices, which have already doubled since the start of the conflict in the Middle East. The benchmark European gas price, the Dutch TTF, has surged following the closure of the Strait of Hormuz by Iran in response to recent U.S.-Israeli military actions. The Strait of Hormuz is a critical waterway for global oil and LNG shipments, with approximately one-fifth of the world’s supply passing through it. Gas prices rose 21.5 percent this week alone due to attacks on energy infrastructure in the region, closing at just under €60/MWh.
While Jørgensen emphasized that the EU’s energy supply “remains relatively protected,” he called for a collective response from member states. He also cautioned that the return of liquefied natural gas (LNG) production from Qatar to pre-crisis levels may capture longer than anticipated. Gas storage facilities currently hold roughly 25-30 percent of Europe’s winter gas needs, making them a vital buffer against supply disruptions.
The EU previously eased storage targets in 2025, and current regulations already allow for a minimum storage level of 75 percent under unfavorable market conditions. Two EU officials described measures to reduce demand as a “straightforward solution” to combat rising energy prices.
However, the proposal carries risks. Several member states have exceptionally low gas storage levels, with the Netherlands currently at just 7 percent. This raises concerns about Europe’s preparedness for potential energy shocks this winter. The Commission’s recommendations were sent to ministers following a market opening on Friday, after European leaders at a Thursday summit called for the development of “temporary and targeted measures” to address high energy prices driven by imported fossil fuels.
The decision to potentially lower storage targets reflects a growing anxiety within the EU about energy security and affordability. The situation is further complicated by geopolitical tensions and the uncertain outlook for LNG supplies.
Leave a Reply