Calling for urgent adjustments to EU gas and LNG rules in light of the current market disruption
A major disruption is currently affecting global gas and LNG markets. Around 20% of global LNG production normally transits through the Strait of Hormuz, and the closure of the Strait together with attacks on regional energy infrastructure has removed a significant share of flexible supply from the global system. Our assessment is that the global LNG market is currently losing up to about 2.5 bcm per week and, if prolonged, could significantly tighten the global market, increasing competition for LNG cargoes and affecting European supply and prices.
At a time when Member States are calling for rapid action to lower energy costs for EU industry and consumers, our recommendations focus on measures that are within the immediate reach of both the Commission and national governments. They could be implemented quickly and can materially improve the functioning of the EU gas and LNG framework in the current crisis context.
REPowerEU - urgent harmonisation and streamlining of the prior‑authorisation regime, including temporary crisis measures if needed, so that no flexible LNG cargo bound for Europe is delayed or diverted for purely procedural reasons during this crisis.
Storage Regulation - the Commission should immediately signal and support full use of all flexibilities in the Storage Regulation and encourage Member States to adjust trajectories by April and avoid being forced into “at any cost” injections.
Methane Emissions Regulation - targeted interim measures, such as “stop the clock” or at least clear transitional arrangements, are needed so that importers can continue to conclude essential contracts in good faith without facing penalties on contracts signed before practical compliance pathways with key exporting countries are fully in place.
Download the full statement below.
