Gas for emergencies: von der Leyen pushes for strategic EU gas reserve
Modeled on oil stocks, it would buffer against supply disruptions and price spikes. But funding and responsibility remain unclear, and the idea of joint purchases has met with little enthusiasm.
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)
In light of the war in Iran, European Commission President Ursula von der Leyen has proposed a strategic gas reserve at EU level. EU leaders discussed it at the summit in Brussels on Oct. 15 and 16, the Bulgarian portal Banker.bg reported, citing three diplomats and two EU officials who spoke to Politico. Similar to existing oil stocks, the reserve would serve as a long-term buffer against supply disruptions and price spikes.
According to the report, key questions remain open: who pays for the reserve, who owns the gas, under what conditions it is released and how it is distributed, and whether Brussels or national authorities manage it. So far, the EU has relied on market incentives to fill storage facilities, which have been weakened by high prices resulting from the Middle East conflict. According to the report, Germany is considering its own strategic reserve, while the Netherlands is subsidizing energy purchases with almost €1 billion. EU leaders received the proposal for joint EU energy purchases without enthusiasm, according to diplomats.
Belgian Prime Minister Bart De Wever said gas prices in his country had risen 70 percent since the start of the year. The Commission is also considering temporary aid for energy-intensive industries such as chemicals and steel, as well as measures to strengthen refining capacity in Europe.