Page 4 - bne IntelliNews monthly magazine April 2025

4 I Companies & Markets bne April 2025
The EU is hoping to cushion itself from possible gas price hikes this summer by relaxing the gas storage requirements in anticipation of shortages later this summer. / bne IntelliNews
EU to soften gas storage rules to avoid price spikes
bne IntelliNews
EU member states are considering softening the bloc’s binding gas storage targets in order to avoid sending gas prices soaring again ahead of what is anticipated to be a difficult year, Reuters reported on March 16.
The EU’s storage tanks are expected to end this heating season only 35% full, one of the lowest levels in years and half the 60% full they ended the 2023/4 season with. That will increase the demand for gas over this summer as members rush to reach the 90% full benchmark by November 1 demanded by EU regulations.
As bne IntelliNews reported, the EU import of Russian gas, largely as LNG, rose by 14% in 2024, but it will have to rise again this year in a politically unsavoury move. Despite its efforts to diversify its energy needs away from Russia, Europe remains hooked on Russian gas.
In 2023 the EU remained 90% dependent on imports to cover its gas needs. In 2022, Russia had still been the main EU supplier in all three main imported energy product categories: oil and petroleum products (21%), natural gas (23%) and solid fossil fuels (23%). Due to the EU sanctions
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imposed as a consequence of the Russian war of aggression against Ukraine since 2022, these shares dropped in 2023 to 4%, 11% and 1% respectively, according to Eurostat.
“Redirecting gas flows has not been successful and Gazprom is stuck. China demands high discounts on gas and to build the power of Siberia 2 it even wants the same prices as the
Russia: Natural Gas Exports, in billion cubic meters (bcm)
Source: Bruegel, Eurostat, S&P Global, KSE Institute