The European Commission has urged EU countries not to delay filling their underground gas storage facilities. Any delay could lead to fierce competition for resources and abnormal price hikes as early as this summer.
This was reported by RBC-Ukraine, citing Bloomberg.
In a letter reviewed by the publication, European Commissioner for Energy Dan Jørgensen urged governments to lower the target for filling gas storage facilities to 80% of their capacity, which is 10 percentage points lower than the bloc’s official targets. Jørgensen also advises gradually filling reserves to avoid a "summer rush" that could put pressure on markets.
The European Commissioner assured that the EU’s energy supply “remains relatively secure.” At the same time, he called for a “collective response” to the energy instability caused by the war in Iran. “High and volatile global prices resulting from the conflict could significantly impact the process of injecting gas into EU storage facilities,” Jorgensen warned.
Gas prices in Europe have risen
As a reminder, natural 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 prior to the U.S. and Israeli operation in Iran.
QatarEnergy reported that several facilities in Ras Laffan were severely damaged following the Iranian strike. According to estimates, approximately 17% of the country’s export capacity has been damaged.
