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Investing.com -- A number of European countries are urging the European Commission to allow more leniency in gas storage refilling requirements for the coming winter, according to a report from Bloomberg. The call comes as quickly dwindling stockpiles and soaring prices raise concerns about meeting the current targets.
The countries will advocate for a relaxation of the goals, which mandate that storage inventories be 90% full by November 1, at a Gas Coordination Group meeting in Brussels on Thursday. This move extends the demands of the group, which was reported last week to be in preliminary talks about softening refilling objectives for future years.
A combination of cold weather and the disruption of Russian gas supplies to Europe via Ukraine has accelerated the depletion of gas inventories this year. Presently, storage sites are at an average of 48% capacity, the lowest for this period since 2022. The anticipation of a surge in demand for refilling this summer is driving up prices, rendering storage unprofitable. In response, Germany’s market manager, Trading Hub Europe GmbH, is contemplating subsidies for restocking supplies.
At least six countries support a relaxation of this year’s target, though it remains uncertain whether there is sufficient backing from others to implement the changes by June, allowing ample time before the winter season. These countries continue to endorse the overall principle of the targets and may opt for minor adjustments to next year’s refilling season.
There are concerns that excessively strict targets this year are contributing to a surge in gas prices, as traders anticipate governments intervening to replenish storage in the coming months. Prices reached a two-year high this week.
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