Von der Leyen floats EU ‘strategic reserves’ for gas amid winter supply fears

European Commission President Ursula von der Leyen has proposed the idea of establishing a bloc-wide strategic gas reserve amid fears of a winter supply shortage, according to three diplomats and two EU officials. This proposal stems from the low levels of existing gas storage caverns, which are typically replenished throughout the year by commercial parties.

The current state of Europe's gas storage, already at record lows this year, is a result of high summer prices caused by the war in Iran, leaving the bloc underprepared for the winter. While the exact form the reserve would take remains unclear, one senior EU official described it as a long-term measure to mitigate future supply risks, similar to how countries handle oil and refined products.

The Commission President's remarks were made during a major summit of European leaders in Brussels on Thursday. The documents outlining November plans to revamp the bloc's gas security architecture include measures to enhance crisis management by companies, but do not explicitly endorse the idea of governments filling strategic reserves to a set level, regardless of market conditions.

Countries like the Netherlands, which has subsidized energy purchases costing nearly €1 billion, and Germany, exploring the development of its own strategic stockpile, have had to adapt their strategies due to the shortcomings of the existing model. Additionally, a proposal for an EU-wide mechanism to carry out joint energy purchases was met with limited enthusiasm by EU leaders on Thursday.