The European Commission has urged its member states to lower their gas storage targets and not rush to replenish their depleted gas reserves. This is according to a letter from the EU's Energy Commissioner, Dan Jørgensen (S), which the Financial Times has seen.
This is being done as an attempt to dampen demand for gas after the war in Iran has hit suppliers and caused energy prices to explode.
Dan Jørgensen writes in the letter that member states should lower the target for when gas storage is full. It should be 80 percent of capacity, according to the Financial Times. This is 10 percentage points below the EU's official target. The target of 90 percent filled gas storage was introduced after Russia's invasion of Ukraine in 2022.
According to Dan Jørgensen, the lowering of the target should take place "as early as possible in the filling season to create security and reassure market players," the media outlet says.
Postponing target
In the letter, Dan Jørgensen advises EU countries to gradually begin filling to avoid what he describes as a race towards the end of the summer. He also suggests waiting until December 1 to reach the storage targets. This is a month later than the targets that the EU introduced after Russia's invasion of Ukraine.
After the US and Israel attacked Iran on February 28, energy prices have skyrocketed.
This is because Iran has imposed a de facto blockade of the Strait of Hormuz, which lies between Iran and the Arabian Peninsula. 20 percent of the world's oil is transported through the strait.
Dan Jørgensen writes in the letter that the EU's energy supply is still what he describes as relatively protected. He calls for a collective response to the conflict, but does not elaborate on what type of response he means.
Gas storage covers about 25 to 30 percent of Europe's gas needs during the winter. They are an important tool to protect the continent against a potential supply shock.
/ritzau/
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