The European Commission has called on member states to lower gas storage targets and gradually begin filling their reserves to reduce demand, after the war in Iran hit critical suppliers and caused energy prices to soar. This was reported by the Financial Times, according to UNN.
Details
The publication refers to a letter from EU Energy Commissioner Dan Jørgensen, in which he instructed the energy ministers of the countries to use "flexibility" to reduce demand from households and industry.
Jørgensen stated that member states should lower the target for filling their gas storage facilities to 80 percent of capacity, which is 10 percentage points below official EU targets, "as early as possible in the filling season to provide certainty to market participants."
Jørgensen also advised countries to gradually start filling reserves to avoid a "late summer rush" that would put pressure on markets to meet storage targets by December 1. This is one month later than the EU legislation regulations established after Russia's full-scale invasion of Ukraine in 2022.
"Jørgensen stated in his letter that the EU's energy supply 'remains relatively protected,' but called for a 'collective response' to the conflict, warning that 'recent developments suggest that the return of liquefied natural gas production in Qatar to pre-crisis levels may take longer,'" the media writes.
Recall
Iranian attacks disabled 17% of Qatar's liquefied natural gas export capacity, causing estimated annual losses of $20 billion and jeopardizing supplies to Europe.