Rebalancing Gas Storage: EU MEPs Push for Flexibility to Tackle Prices and Secure Supply
- maria tsaousi
- Apr 25
- 2 min read
EU Gas Market Reform: Greater Storage Flexibility Aims to Ease Prices and Safeguard Supply
April 25, 2025
The European Parliament’s Industry, Research and Energy (ITRE) Committee has just approved a key proposal that could reshape the EU’s approach to gas storage and energy market stability. As Europe continues to navigate global energy uncertainty, this legislative move signals a strategic shift toward greater market responsiveness without compromising security of supply.
Responding to the Crisis: From Rigidity to Flexibility
The proposal—adopted by ITRE on April 24—aims to extend and refine the EU’s existing gas storage framework, initially introduced in response to the 2022 energy crisis triggered by Russia’s full-scale invasion of Ukraine. That crisis underscored the vulnerability of Europe’s energy system and accelerated a wide range of policy interventions aimed at securing access to affordable energy.
Under the current regulation, EU member states must fill their gas storage facilities to 90% capacity by November 1 each year. While this target successfully bolstered winter readiness, it also contributed to price volatility as countries scrambled to meet fixed deadlines under tight global supply conditions.
The newly proposed amendments offer a more flexible and market-conscious framework.
Key Elements of the Proposal
Reduced Storage Target: Annual fill rate reduced from 90% to 83%
Extended Timeline: Compliance window adjusted to any point between October 1 and December 1
Conditional Flexibility:
Member states may deviate by up to 4% due to market disruptions or demand spikes
The European Commission may allow a further 4% deviation under prolonged adverse conditions
Minimum Threshold: Regardless of flexibilities, storage levels must not fall below 75%
These changes are designed to mitigate speculative behavior, reduce unnecessary procurement pressure, and ultimately bring greater price stability to the EU gas market—especially ahead of winter, when energy demand surges.
A Longer-Term Commitment to Energy Stability
In addition to these technical adjustments, the committee backed the European Commission’s proposal to extend the gas storage regulation through December 31, 2027. This provides a longer planning horizon for both national regulators and market participants, ensuring predictability and reinforcing investor confidence.
What This Means for Industry Stakeholders
For utilities, traders, infrastructure operators, and policymakers, this shift in strategy provides much-needed operational flexibility—enabling smarter procurement decisions while still preserving the core objective of winter supply security.
From a corporate and advisory perspective, we see several implications:
Improved Market Conditions: Reduced pressure on procurement timelines may help stabilize wholesale gas prices across the EU.
Policy Coordination: Greater reliance on Commission oversight for deviation allowances signals a more dynamic regulatory approach.
Investor Signals: Extension through 2027 reinforces the EU’s commitment to energy market resilience and infrastructure reliability.
Next Steps
The proposed legislation, led by ITRE Committee Chair Borys Budka (EPP, Poland), passed with 64 votes in favor and is expected to be presented for a final vote during the European Parliament’s plenary session from May 5–8 in Strasbourg.
If adopted, this initiative will mark a critical evolution in how the EU approaches gas market governance—one that aligns economic prudence with energy preparedness.
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