The EU plans to increase natural gas gas storage capacity to 85% of the full gas storage capacity by the end of 2022.
Golden Ten DataJune 27th, the European Union recently passed a resolution on the minimum storage capacity of natural gas. They require member states to fill their natural gas storage facilities at least 80% by May 5 this year to ensure that the EU Natural gas storage capacity can be filled before the arrival of winter. In addition, member states should share stocks "in a spirit of solidarity".
French Energy Transition Minister Agnes Pannier-Runacher welcomed the regulation and said:
" In the current international context, this will allow us to strengthen Europe's energy resilience and Solidarity among member states.”
Having adequate natural gas stocks is key to weathering the winter peak in electricity demand for heating and lighting. Shared stocks ensure that all member states have adequate energy supplies and can help each other if a crisis escalates.
According to GIE data, in October 2021, the EU's natural gas reserves were 77% of full gas reserves, but by March this year it had dropped to 25%. According to data from the Global Gas Industry Association, as of May 5, the stock of natural gas storage facilities in the EU was only 555.7%.
Concerns about inventories have driven oil prices to record highs across Europe in recent months. Platts Energy Information 's Platts price assessment shows that the European natural gas price benchmark TTF was 129 euros/MWh on June 24, an increase of 56% from the beginning of this month and a year-on-year increase of 310%.
85%’s target
The new EU regulations clearly state that as of November 1, 2022, the natural gas storage capacity of EU member states must reach more than 80% of the capacity of all their storage facilities, and by November 1 of subsequent years. Must reach above 90%.
The European Council stated that the EU's goal is to increase natural gas storage capacity to 85% of full gas storage capacity by the end of 2022. However, the report also pointed out that since natural gas storage capabilities and national conditions vary, member states need to meet some storage targets on a case-by-case basis.
In addition, the filling rate of underground gas storage in each member state is limited to 35% of the EU's average annual natural gas consumption over the past five years, because the capacity of some member states' gas storage is much higher than their natural gas consumption.
There are also some member states that lack storage facilities, so the regulation stipulates that they should store 15% of their annual domestic gas consumption in other member states' stocks.
The European Council believes:
"This mechanism of not only strengthens the security of natural gas supply, but also shares the financial burden of filling natural gas inventories for some member states with difficulties."
certification system
In addition, the European Council also adopted a Regulation stipulates that EU gas storage operators should obtain certification to avoid the risk of external interference.
The rule is likely to target sites previously owned by Gazprom, such as Rehden in Germany and Haidach in Austria , which were mostly idle last winter.
Storage facilities with a capacity of more than 350 million kilowatt hours and with filling levels below the EU average in the two-year period 2020-2021 can also apply for the fast-track certification process.
Separately, the EU Council said that the obligation to fill gas stocks will end on December 31, 2025, while after that, the certification of gas storage operators will still apply. The Council added that Cyprus, Malta and Ireland would be exempt from some obligations if they are not directly connected to other member states' gas systems.
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