The Netherlands is pushing to drop the EU's requirement for countries to fill gas storage to fixed levels through 2027. Those obligations are mostly tied to storage capacity rather than how much gas each country actually uses, which leaves the Netherlands - big storage, falling demand - with an outsized task the government says markets should handle. Climate Minister Stientje van Veldhoven told parliament Friday that declining consumption and "large-scale purchases by other European governments" have warped the economics of storing gas.
A draft plan reviewed by Bloomberg News indicates the European Commission does not intend to prolong the mandatory storage targets beyond the current schedule. Instead, it aims to merge existing laws and build a wider security of supply framework covering both gas and electricity, dropping the current gas regulation that contains storage targets. The proposal is due later this year.
The Dutch also say the rules ignore their role as a regional hub. Their storage helps keep neighboring countries supplied, yet there is no way to bill other EU members for the cost of filling those facilities.
This has been a tough year to inject gas across Europe. Because of the Middle East conflict, summer prices have traded above winter contracts, eliminating the incentive to inject. Since the war began, prices for European gas have climbed to more than twice their earlier levels, touching their highest mark since late 2022 earlier this month. To hit EU requirements anyway, the Dutch government has increasingly subsidized injections, committing close to €1 billion this filling season to replenish reserves.
Europe's storages sit around 70% full, versus a seasonal norm of 86%. The Netherlands is lagging further at just over 56%. To ease wholesale price pressure, the Dutch have already trimmed their national fill target after a call from the Commission as the conflict persists.
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Rather than blanket national fill levels, Brussels wants to set standards for companies to meet under specific supply disruption scenarios. National governments would then write those standards into domestic rules and could fine firms that fall short. The autumn proposal must be approved by the European Parliament and EU Council, and both can propose amendments. That legislative path typically takes at least a year.
According to Van Veldhoven, the Dutch want a consumer safeguard included in the new regime whereby retailers that supply protected users, like households, could be required to keep part of the needed gas in storage to meet their obligations.
The Netherlands is also weighing a much larger strategic gas reserve strictly for emergencies, not for nudging prices. It holds about 5 terawatt-hours today and is studying options up to 72 terawatt-hours. For household bills, the bigger swing factor remains supply stability and price spikes, and the Dutch hub still anchors Europe's benchmark gas price. Keep an eye on the autumn proposal and the long rulemaking slog that follows to see who ultimately pays to keep the heat on.
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