Proposal for Two-Year Extension of EU Gas Storage Regulation

On 5 March 2025, the European Commission proposed a two-year extension of the EU Gas Storage Regulation, originally set to expire at the end of 2025. The proposal, which now requires approval by the European Parliament and the Council, seeks to maintain the existing 90% gas storage filling target for Member States until the end of 2027. While the extension is intended to safeguard the EU’s energy security, the Commission also introduced measures to provide Member States with greater flexibility in meeting storage obligations, reflecting concerns about market volatility and price fluctuations.

Background: The Role of Gas Storage in Energy Security

Gas storage plays a vital role in the EU’s energy system, ensuring security of supply during peak demand periods and mitigating supply disruptions. Gas storage facilities currently account for approximately 25-30% of the EU’s winter gas consumption. The existing Gas Storage Regulation (Regulation (EU) 2022/1032) was introduced in response to the 2022 energy crisis, requiring Member States to fill storage sites to 90% capacity by 1 November each year.

This measure, initially adopted as a temporary safeguard, was instrumental in stabilising European gas markets during a period of extreme price volatility. Since its implementation, the EU has successfully met or exceeded the storage target each year, preventing shortages during winter months. However, as the global gas market remains tight and competition for liquefied natural gas (LNG) supplies intensifies, the Commission believes that continued regulatory intervention is necessary to sustain market stability.

Key Elements of the Extension Proposal

Under the new proposal, the 90% storage target will remain in place until the end of 2027. However, responding to industry concerns about market distortions, the Commission has introduced greater flexibility in how Member States can achieve this goal.

One of the main concerns raised by stakeholders – particularly Germany and other large gas-consuming countries – was that rigid compliance deadlines create artificial demand spikes in the summer months, driving up prices when utilities rush to fill storage sites ahead of winter. To address this, the Commission’s new proposal allows Member States to meet the 90% target at their own pace, provided they reach full storage levels before winter. This approach enables governments and energy companies to take advantage of more favourable purchasing conditions throughout the year, reducing pressure on gas markets and preventing unnecessary price surges.

Additionally, the Commission will continue monitoring gas storage levels in coordination with Member States through the Gas Coordination Group, ensuring that flexibility measures do not undermine energy security. The Commission has also stated that it will conduct a comprehensive review of the EU’s energy security framework before 2027 to determine whether further legislative measures, including permanent gas storage requirements, should be introduced.

What’s Next?

The extension of the Gas Storage Regulation will now be reviewed by the European Parliament and the Council. If approved, the revised regulation will take effect before the current provisions expire at the end of 2025.

At the same time, the Commission will continue its broader review of the EU’s energy security framework, assessing whether additional structural reforms are necessary beyond 2027. This review will include a public consultation on the role of gas storage, evaluating whether permanent regulatory measures should be introduced in the future.

For businesses and energy market participants, the proposal signals continued regulatory oversight of gas storage, but with increased flexibility to manage procurement strategies. While the extension aims to balance security and market stability, the long-term trajectory of EU gas policy will likely depend on the outcome of the Commission’s upcoming energy security review.

We will continue to monitor developments and provide updates as the legislative process moves forward.