EU chief pushes for strategic gas reserves in Europe — Politico
Photo: Ursula von der Leyen (Getty Images)
European Commission President Ursula von der Leyen wants EU leaders to consider the idea of creating strategic gas reserves amid fears that the continent will face a gas shortage this winter, according to Politico.
Gas reserves in existing European storage facilities, which are typically replenished throughout the year by commercial companies, are at a record low this year due to the war in Iran. As a result, market incentives to replenish reserves have been undermined, and the bloc has found itself unprepared for winter.
Although it was not yet clear to diplomatic representatives what form the idea of creating a reserve would take, one high-ranking EU official described it as a long-term measure to mitigate the consequences of future supply risks, as is already being done with oil and petroleum products.
Documents detailing plans for a November review of the EU's gas supply security system, which POLITICO reviewed earlier this year, outline measures to encourage companies to manage crises more effectively.
However, the documents do not explicitly support the creation of strategic reserves that governments would be required to replenish to a set level to compensate for supply shortfalls regardless of market conditions.
At the same time, two diplomats told the agency that a separate proposal by the European Commission to create a pan-European mechanism for joint energy procurement did not generate much enthusiasm among EU leaders.
What else important to know
In July, the CEO of Equinor, Europe's largest natural gas supplier, stated that Europe would most likely be unable to fill its gas storage facilities to 80% capacity by the start of winter.
The war in the Middle East led to Belgium relying entirely on liquefied natural gas imports in July.
