The European Commission (EC) has proposed extending the current gas storage regulation until the end of 2027, citing ongoing geopolitical uncertainty and instability in global gas markets. This two-year extension aims to bolster energy security, maintain market stability, and ensure a coordinated approach among EU member states in preparing for the winter months.
Commissioner for Energy and Housing Dan Jorgensen emphasized that gas storage has been crucial in shielding EU citizens from supply disruptions. While advocating for its continuation, he underscored the importance of flexibility, allowing member states to fill storage facilities under optimal conditions throughout the summer. This approach seeks to prevent market distortions and ease pressure in the energy sector.
Originally introduced in June 2022 at the height of the energy crisis, the gas storage regulation was designed to secure sufficient supplies. The EU’s 90% storage filling target has been consistently surpassed before each heating season, with storage facilities currently accounting for 30% of the region’s winter gas supply.
A key objective of the regulation was to enable gas purchases at lower summer prices when demand is lower, ultimately reducing energy costs for EU consumers. However, the storage mandate has recently resulted in unintended market imbalances. Since November 2024, the European gas market has experienced an inverted price structure, with summer 2025 gas contracts exceeding those for winter 2025-26. This negative summer-winter price spread has weakened commercial incentives for companies to stockpile gas ahead of the heating season.
To address these challenges, the Commission recommends a more flexible storage strategy, allowing purchases to be made under more favorable conditions throughout the year. This would help prevent market disruptions and mitigate risks to the EU’s energy security.
The proposal will now be reviewed by the European Parliament and the Council. Additionally, the Commission plans to assess the broader energy security framework to determine whether more permanent storage measures are necessary. It will continue working with member states through the Gas Coordination Group to monitor supply security and implement measures to optimize gas storage refilling.
