EU adopts gas storage regulation: 80% by 1 November 2022, 90% later

Regulation (EU) 2022/1032 of 29 June 2022 introduced an obligation to fill gas storage in EU countries: to 80% of capacity before 1 November 2022 and to 90% in subsequent years. The rules are intended to protect Europe from the effects of supply restrictions from Russia and to limit price fluctuations during the heating season. For the Polish market it is significant that storage in the country was already filled to a large extent, but the rules also concern the oversight of operators and cooperation between countries.

What is changing

The regulation amends two acts: Regulation (EU) 2017/1938 on security of gas supply and Regulation (EC) No 715/2009 on access to transmission networks. It introduces mandatory filling levels, the possibility of applying intermediate trajectories, and certification of storage operators as a condition of operation. For countries that have storage facilities located on their territory which also serve other countries, elements of solidarity and information exchange are provided for.

The aim is to reduce the risk of gas shortages in a crisis and to strengthen the EU's negotiating position. In practice the rules mean that the market must build up stocks in periods of lower demand, which affects prices in summer.

Significance for the industry in Poland

Poland has storage facilities with a total capacity of several billion cubic metres, which in 2022 were filled to a high degree. In this situation the EU obligation is not a major burden for the country, but it confirms that security of supply is a shared task. Stabilisation of the gas market improves conditions for industry and district heating.

For the biogas industry this is context: high gas prices improve the economics of biomethane, but market uncertainty makes investment planning harder. Biomethane can supplement domestic resources in periods of increased demand and, in the medium term, become part of security plans if an efficient system for connecting installations to the grid is created.

Why storage matters for prices

Gas storage works as a buffer: in summer, when consumption is low, the market accumulates fuel, and in winter it draws on it. When countries try to fill their tanks at the same time, demand and prices rise. Mandatory filling levels are intended to limit the risk of shortages, but at the same time they may raise prices in the short term. For industrial customers and heating plants this means the need to plan purchases in advance and to consider alternatives, including their own biogas production.

What next

EU countries will report storage filling levels, and the Commission monitors the achievement of the targets. Talks are also under way on joint gas purchasing and price-limiting mechanisms. For biogas producers it will matter whether the security of supply rules begin to treat renewable gases as an element of the system.