EU Parliament backs loosening gas storage rules

By Kate Abnett

BRUSSELS (Reuters) -The European Parliament voted on Thursday in favour of loosening the EU's rules on filling gas storage, agreeing with concerns from member states that the targets risk inflating energy prices.

The EU's gas storage rules were introduced in 2022 to ensure EU countries had a buffer of stored fuel during winter, after Russia cut gas deliveries following its full-scale invasion of Ukraine, sending Europe's gas prices soaring.

But governments backed plans last month to soften the rules before winter, over concerns the requirement to fill storage to 90% capacity by November 1 inflates prices, by telling the market European buyers needed to buy large amounts of gas ahead of this deadline.

The European Parliament On Thursday supported lowering the filling target to 83% and allowing countries to meet it at any time between October 1 and December 1.

Countries should also be allowed to deviate from the 83% goal by four percentage points, in the event of unfavourable market conditions, such as high gas prices, the lawmakers said.

Thursday's vote increases the likelihood that the EU targets will be loosened ahead of this winter.

The changes will apply to EU storage-filling targets for 2026 and 2027. But if approved in the next few months, the changes will also apply to this year's November target.

The Parliament and EU countries will now negotiate the final rules, with the aim of approving a final deal around July.

EU countries' negotiating position is similar to the changes backed by Parliament on Thursday, with countries seeking a 10 percentage point reduction of the 90% target in unfavourable market conditions.

Benchmark EU gas prices have fallen since February, retreating to a near nine-month low last month, in reaction to concerns of the economic fallout from U.S. President Donald Trump's trade war, as well as the push to ease Europe's storage-filling obligations.

(Reporting by Kate Abnett; editing by David Evans)