The EU plans to weaken the target to fill the gas for the member states

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The EU plans to relax gas replenishment for the member states because it tries to reduce market violations that caused the permanent countries from the winter.

A The European Commission On Wednesday, he stated that he wants to give countries greater flexibility when and how many repositories to create, since the assumptions that arise that the block could not be able to reach its goal this year.

“More flexible filling trajectories with the support of the commission can help reduce the system’s stress and avoid distortion of the gas storage market, supporting the refueling under the best conditions of purchase and safety supplies,” the commission said. This did not give more information about its plans.

Gas in storage acts as an important block for the block in the winter months, when demand is the highest, which reduces the volatility of the market. In 2022, after a complete invasion of Ukraine, the EU introduced a minimum target of 80 percent in the country after a complete invasion of Ukraine and 90 percent for each year.

But traders warn that politics violates natural gas The market, pushing prices during the summer and does not give confidence in gas storage this year.

Traders say the regulation has contributed to the distortion of the market through the countries to buy at the same time.

“In fact, the regulations that are implemented to protect the market next winter, actually distorted the market much earlier,” one trader said.

It is unclear how the commission’s plans will influence the goal of November 1 this year or in the coming years.

This winter is a combination of cold weather, low -electing from wind and Loss of Russian gas gas Through Ukraine, the New Year meant that the region had to get more from its shelter than in previous years.

Natural gas in Europe has historically been cheaper in the summer when demand is lower. In the past, it gave an incentive for traders to buy and store gas, and then sell it with a profit at the winter peak of the heating season. But the need to buy more gas this year to achieve the EU goal has led to an anomaly in the market where summer gas prices are higher than in winter.

This is a “real headache for Europe” because it signals about traders that they “can’t make money from storing gas this year,” said Laura Page, Gas and Ing Insight Manager in the Data Data turnover.

At the end of January, the Gas Prize for Winter Prices reached more than 6 euros per megawatt in late January, its highest in history, according to Argus pricing, although it has been narrowing since then.

The EU gas repository was 40.3 percent filled on Monday, which is more than 20 percentage points below where it was last year. “If you look at the current market conditions, there is an opportunity” that the EU does not meet its 90 -percent goal, said Florence Schmidt, Rabobank’s energy strategist.

In some countries, such as Austria and Czech Republic, there are individual storage targets based on their average consumption, which are usually lower. But in the countries without these goals, the summer pricing was “creating a lot of uncertainty,” said David Luf, senior analytics and consultation in the Argus.

In Germany, which has a law that causes it to fill 90 percent of storage by November 1, more than half the container has not been reserved since April 25, he said.

Summer prices have previously risen above winter prices during 2022, against the background of the continent’s energy crisis. Traders were not a gas purchase to put in storage, and in some countries it was necessary to intervene the government.

In Germany, the transfer system consortium, on behalf of the government, purchased gas worth 50 TWH in 2022, having spent almost 9 billion euros, per unit of 174 euros/MW, is much higher than the prices this winter. It is not yet fully recovered.

“The targets for gas storage facilities were justified in a specific crisis situation after the Russian war in 2022. (but) the situation has now decreased,” said Andrea, chairman of the German Energy Lobby BDEW. The group urged Germany to reduce to 80 percent.

“Legal requirements have a great impact on the market behavior and are a false stimulus for seasonal cover,” she said. “Reduced national filling goals for gas shelters from 90 to 80 percent can help reassure the market.”