The European Commission has urged European Union countries to prepare for the coming winter and fill gas storage tanks early, taking into account the impact of the Iran war on energy prices, Reuters reports.
Meeting in a closed meeting, the EC pointed out that there is no immediate threat to EU gas supplies, but encouraged governments to act now to counter rising prices. The bloc’s countries have been urged to start filling gas storage tanks as early as April, thus preparing for the coming winter in time.
Since the US and Israel began attacks on Iran on the 28th of February, gas prices in Europe have increased by more than 70%. The conflict has shaken energy markets, as Iran has closed the Strait of Hormuz, through which a fifth of the world’s oil and natural gas is exported. Iran’s retaliatory strikes have also reduced Qatar’s liquefied natural gas export capacity by 17%.
The EC reminded that the governments of the bloc can use the flexibility of EU rules and lower the target
of filling the storages to 80% instead of the officially set 90%. Currently, the EU’s gas storages are unusually empty for this time of year, reaching only 28% of capacity. Brussels wants the countries to start filling the storages in time, thus avoiding simultaneous, large purchases that could contribute to a new price increase.
However, high gas prices are deterring companies from filling the storages, and some countries’ stocks are almost exhausted, for example in the Netherlands, gas storages are only 6% full. An EC representative said on the 26th of March that the EU is currently not experiencing supply problems, as the bloc mainly uses natural gas from Norway and the United States, not the Middle East.
Read also: Tehran reviews US ceasefire plan; no talks planned