European Parliament vote on storage filling sets up final compromise talks

• European Parliament signs off storage filling approach
• Negotiations to find a compromise between approach of Parliament and EU countries can begin
• First talks to take place on 13 May

LONDON (ICIS)–Talks to find a compromise on lowering the EU’s gas storage targets will begin on 13 May, after the European Parliament adopted its negotiating mandate in a vote on 8 May.

Legislators greenlit the committee on industry, research and energy (ITRE)’s proposal that would lower the fill target to 83% but allow for a target to fall as low as 75% depending on market conditions.

The house also approved an amendment calling for countries to “refrain from storing gas of Russian origin” and for the EU to pursue an immediate end to Russian gas and LNG imports.

A delegation from the Parliament will now begin so-called trilogue negotiations with countries, represented by the Council of the EU, and with the European Commission also attending.

EU diplomats agreed the Council position on 11 April, with a target of 80% in unfavourable market conditions, although a general aim of 90% full remains.

The rules would extend gas filling obligations beyond their current expiry at the end of the year through the end of 2027.

Lawmakers have indicated they wish for the rules to apply to the rest of 2025, but these cannot take effect until a deal is done and published in the Union’s official journal.

Market expectations of a deal have caused the Dutch TTF Q3 ’25 gas contract to flip to a discount to the front winter as the EU legislative process has progressed.

ICIS assessments showed the TTF Q3 ’25 discount averaged €0.548/MWh below Winter ’25 between 9-23 April, correlating with details of the Council position. The spread widened to €0.955/MWh from 24 April-7 May, after the ITRE committee vote suggested a speedy resolution to negotiations.

The Dutch TTF Q3 ’25 held an average premium of €2.769 over Winter ’25 during the first three months of 2025.

PROPOSAL DETAILS

The proposal, in line with the Council’s position, provides a window between 1 October-1 December for shippers to meet the target.

This time range would allow more flexibility, “which would mean that at key deadlines gas prices would not be much higher”, ITRE committee chair Boris Budka, who leads the parliament’s work on the file, told MEPs on 7 May.

EU energy commissioner Dan Jorgensen signalled that the European Commission would work with the co-legislators to ensure a swift compromise in trilogues.

“I agree that such flexibility can alleviate the current market situation, and I trust that an agreement could be reached soon,” Jorgensen said.

Poland, which holds the rotating Council presidency until June, has stated a desire to reach a provisional deal by the end of its mandate, but the timescales remain uncertain.

LAWMAKER VIEWS

There was much political consensus around lowering the targets, with German MEP Andrea Wechsler saying a return to a market-based structure was vital, due to the distortions created by the rules.

The centre-right European People’s Party grouping, the house’s largest, called for “a new balance between supply, security and market circumstances and thinking in free-market terms as well,” she said.

However, Yvan Verougstraete of the centrist Renew group called for Europe to take further action by developing North Sea gas reserves and creating a 90-day strategic gas reserve similar to the one for oil.