European Commission urges EU countries to stockpile gas
Photo: EU Energy Commissioner Dan Jørgensen (Getty Images)
The European Commission has urged EU countries not to delay filling their underground gas storage facilities. Any delay could trigger fierce competition for resources and cause abnormal price spikes this summer, according Bloomberg.
In a letter seen by the publication, EU Energy Commissioner Dan Jørgensen urged European governments to lower the target for filling their gas storage facilities to 80% of capacity, 10 percentage points below the bloc’s official benchmark.
Jørgensen also advised countries to gradually start filling their reserves to avoid a "summer rush" that could put pressure on the markets.
The EU commissioner assured that the EU's energy supply "remains relatively protected" while calling for a "collective response" to the energy instability caused by the war in Iran.
"High and volatile global prices may also impact the EU gas storage injections," Jørgensen warned.
Gas prices rise in Europe
Gas prices in Europe surged sharply after Iran launched a missile strike on the world’s largest liquefied natural gas (LNG) plant in Qatar.
Benchmark futures rose by 35%, more than double the level seen before the US and Israeli operations in Iran.
QatarEnergy reported that several facilities at Ras Laffan were seriously damaged by the Iranian strike. According to estimates, about 17% of the country’s export capacity was affected, and recovery will take three to five years.
