The European Commission is reacting to the war with Iran and intends to lower the target for filling gas storage facilities before the coming winter to 80 percent, instead of the usual 90 percent. This decision is due to sharply rising energy prices since the end of February, attacks on oil and gas facilities in the Gulf States, and the de facto closure of the Strait of Hormuz, which is crucial for the transport of oil and liquefied natural gas. At the same time, storage facilities in many countries are largely depleted after the winter; in Germany, they are currently at just under 22 percent. The main consequence: While supplies are currently considered stable, refilling will become significantly more difficult and expensive. (ntv: 21.03.26)
Lower Target Aims to Reduce Price Pressure
EU Energy Commissioner Dan Jørgensen urged member states in a letter to consider lowering their storage capacity target to 80 percent “as soon as possible.” The Commission aims to calm the market and prevent energy suppliers from buying at inflated prices under intense time pressure. This reduces the importance of the current 90 percent target, even though Europe has focused heavily on maximizing storage capacity in recent years.
Jørgensen also justified the move with the aim of providing market participants with “security and confidence.” This is particularly important because the situation on the energy markets has become significantly more tense since the start of the new escalation in the Middle East. When states and companies have to procure large quantities simultaneously, this usually drives prices even higher.
War in the Middle East is driving up oil and gas prices
Since the start of the war with Iran at the end of February, the price of oil has risen by more than 50 percent, while gas prices in the EU have increased by more than 30 percent. The decisive risk factor lies not only in the fighting itself, but also in its consequences for the energy infrastructure. Iran is directing its retaliatory attacks against oil and gas facilities in the Gulf States, which is why concerns about further disruptions are growing.
The situation at the Strait of Hormuz is particularly critical. The strait is considered a key route for the global transport of oil and liquefied natural gas, but it is effectively no longer navigable. This immediately impacts the market, as traders and importers must expect delays, cancellations, and higher transport costs.
Germany’s gas storage facilities remain sufficient for now
Despite the tense situation, the EU Commission does not yet consider the current supply situation to be acutely critical. Jørgensen explained that the gas supply in the EU is “still relatively secure at present” because member states obtain a large portion of their liquefied natural gas (LNG) from the USA. This supply structure reduces the immediate risk, even though the global market price remains unaffected.
According to the industry association Ines, storage facilities in Germany are currently almost 22 percent full. This is sufficient, even in extremely cold temperatures, “to ensure the gas supply until the end of the heating season.” However, the risk is increasing for next winter, as refilling the storage facilities under current market conditions is an “exceptionally large challenge.”