The EU has urged member states to lower gas storage targets and start refilling reserves early to stabilise markets as energy prices spike due to the Iran-Israel war.

BRUSSELS: The European Union has urged member states to lower natural-gas storage targets and begin refilling reserves gradually to curb demand. This directive comes as energy prices spike during the ongoing conflict between Israel and Iran.

Energy Commissioner Dan Jorgensen instructed member states to lower the filling target for their gas storage facilities to 80% of capacity. This is 10 percentage points below the EU’s official targets and should be done “as early as possible in the filling season to provide certainty and reassurance to market participants,” according to a letter seen by the Financial Times.

The European Commission did not immediately respond to a request for comment from Reuters. Gas prices in Europe surged as much as 35% on Thursday after Iranian and Israeli strikes targeted key Middle Eastern gas infrastructure.

The damage is likely to take years to repair. “The EU’s energy supply ‘remains relatively protected’,” Jorgensen said in the letter.

He called for a “collective response” to the conflict and warned that “recent developments indicate that it could take longer for (liquefied petroleum gas) production to return to levels known before the crisis”. Gas storage is critical for Europe to meet winter heating and power demand.

“We need to make the targets more flexible,” an EU official told the newspaper. The commission also instructed governments on Wednesday to be flexible in enforcing EU rules on gas imports.

This move is designed to ensure laws enforcing the phase-out of Russian energy do not inadvertently hold up deliveries needed to stabilise supplies during the current crisis.

 The Sun Malaysia