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The EU plans to relax gas storage targets for state members, because it is tried to reduce market disruption without winter stocking for winter.
the European Commission Said Wednesday wants to give countries more susceptible to when and how much storage, as the arrival of seizure that the formals could not reach that target this year.
“The easier filling tails, with commission support, help reduce system stress and avoid market distortions associated with refilling purchase conditions,” the Commission said. It does not provide additional details to its plans.
Gas to storage acts as an important buffer for bloc in winter months if the need is highest, reduced market order. The EU identifies a minimum target of 80 percent storage capacity per country by 2022 after the total invasion of Ukraine, and 90 percent of each year.
But traders warn that the policy has broken the Natural gas Market, pushing summer prices and disincenivising to construction of storage this year.
Traders say regulation contributes to market distortion by pressing countries to buy at the same time.
“Thus, the regulation was executed to protect the market next winter actually distorted the market before,” as a businessman.
This winter, a combination of coldest weather, low generation of electricity from the wind and the Losses in the Russian pipeline pipeline Through Ukraine since the meaning of the new year means the region has to take more from storing it than in the past few years.
Europe’s natural gas has a history that is cheaper in summer if the need is lower. That in the past provides an incentive of merchants to buy and store gas, and sell it to a winter winter heating season. But the need to buy more gas this year to answer the EU target is causing an anomaly to market where summer gas prices are higher than winter.
This is “a true headache for Europe” because it signs traders that they “cannot do any money in Laura data storage in the commodities data firm firm firm.
The prices of summer prices of winter prices have reached more than € 6 per Megawatt at the end of January, the maximum period, according to the price of the agency, even if it was the price of the agency.
The gas storage of the EU 40.3 percent full of Monday, more than 20 percent points below where it was last year. “If you look at the current market situations, there is a possibility that the EU falls on its 90 percent target, Florence Schmit said in Rababbit.
Some countries such as Austria and Czech Republic have individual storage targets based on their average consumption, which is lower. But in countries they do not have target targets, summer prices previum is “making many uncertainty”, as David Luff, Senior Manager of Airtorics and Argus consultants.
In Germany, with a law force this to fill 90 percent of storage on November 1, more than half of storage capacity from April 25, he said.
Summer prices have previously been through winter prices during 2022, between the continent energy crisis. Traders have not been purchased from gas purchases to put in storage, and, in some countries, government intervention is required.
In Germany, a consortium of transmission system operators, for government, purchased 50 gas amounts in 2022, spent € 9bn, in a unit cost of € 174 / mwh, good to prices in winter. It has not yet fully regained costs.
“Gas levels on gas levels are justified in the specific state of the crisis after the Russian war war at 2022…………………..
“Legal requirements have a great impact on market behavior and a false incentive for a seasonal conquest,” he said. “A reduction in the national degree of filling for gas storage facilities from 90 to 80 percent help calm the market.”