The European Union is currently engaged in discussions regarding amendments to its Gas Storage Regulation. Firstly, it is proposing a two-year extension of the mandates to the end of 2027. Secondly, it is negotiating a relaxation of storage fill levels, down from 90% full by the 1st November to a more flexible 83% full between 1st October and 1st December. The proposal will be voted on by the EU parliament this May and will apply to all EU nations with underground gas storage. If approved in time, it will apply for the 2025 injection season (as well as 2026 and 2027), helping ease market concerns that the original target of 90% was artificially inflating prices, creating challenges for economic storage filling.
The current landscape of storage obligations varies significantly across member states. Five nations – Austria, Czechia, Hungary, Latvia, Slovakia – have a derogation on their mandate, as their technical storage capacity exceeds the volume they typically consume over withdrawal season. The Netherlands too has a derogation, applied due to its role as an exporter to Europe. Conversely, the majority of the storage fill burden this summer rests on Germany, France, Italy, and the Netherlands. The behaviour of these countries will be an important factor shaping intra-European hub price formation over the coming months.
For more information on gas storage mandates, gas storage value, and the factors that have been driving gas prices recently, or for any more information on our services, please contact David Duncan (Director, LNG & Gas) at david.duncan@timera-energy.com.
Ellen Doherty (Senior Analyst) and Luke Cottell (Associate Director) will be attending FLAME over 13th– 15th May 2025. Please contact Ellen at ellen.doherty@timera-energy.com if you would like to catch up on the services Timera Energy provide, LNG Bridge, our quarterly Global Gas Service or anything else.
