Although the situation on the gas market has now eased, the EU member states want to extend the expiring emergency plan. This means that the savings target of 15 percent remains in place.
Despite the significantly better supply situation, the EU countries want to continue saving gas. The energy ministers of the member states agreed today at a meeting in Brussels to extend the gas emergency plan, which expires at the end of the month, for another year.
According to this, the EU states should continue to voluntarily keep their gas consumption 15 percent below the average consumption for the period from April 2017 to March 2022. “Although security of supply in the EU has improved, demand must be further reduced to ensure sufficient gas storage for next winter,” the countries said.
Emergency plan is to be extended for the second time
The emergency plan came into force in 2022 in response to the energy crisis caused by the Russian attack against Ukraine and was originally scheduled to last until the end of March 2023. A year ago, however, the energy ministers agreed on an extension until March 2024.
The EU Commission proposed a new extension last week, which still has to be formally accepted. Although the EU’s energy prospects had improved, savings were still needed. “Continued gas savings will help maintain and improve current market stability,” it said.
Experts warn against LNGOvercapacity
Between August 2022 and December 2023, natural gas consumption in the EU fell by 18 percent, according to the EU Commission. The efforts then went beyond the savings target of 15 percent. However, according to previous information, the savings vary greatly from Member State to Member State.
According to a report from the Institute for Energy Economics and Financial Analysis (IEEFA), gas demand in European countries has actually fallen by 20 percent since the start of the Ukraine war two years ago. At the same time, however, the US think tank is now warning of overcapacity and renewed dependence on suppliers in connection with the terminals built for liquefied natural gas (LNG) in Europe.
With a view to a relaxed situation on the European gas market, the German Institute for Economic Research (DIW) also recently announced that “the oversized LNG infrastructure expansion is not necessary to avoid a potential gas shortage and should therefore not be pursued further.” The current gas storage levels in Germany and the EU were sufficient to provide sufficient supplies to both Germany and Eastern Europe, even in the potentially very cold months of February and March 2024.
Lowest heating demand in Germany for 12 years
Demand for natural gas has fallen sharply in recent months, particularly in Germany, Italy and Great Britain, according to the recently published IEEFA study. The decline is due in particular to higher energy efficiency and demand management, but also to the consequences of the massive increase in gas prices and mild weather in the winter months.
This is also shown by a current analysis by the comparison portal Check24, according to which consumers in Germany have never had to heat as little as in the current heating season since the data was collected in 2011. On average, the heating requirement was seven percent from September to February below the also mild period of the previous year.