The European Union (EU) has issued a warning to its member states regarding a potential energy price crisis triggered by the ongoing conflict in the Middle East. In a letter to energy ministers within the 27-nation bloc, EU Energy Commissioner Dan Jorgensen emphasized the region’s reliance on imported fossil fuels and urged governments to prepare for the upcoming heating season by reducing demand and filling gas storage facilities.
Jorgensen highlighted the dual crisis of rising prices and supply shortages, which have escalated since the US-led war on Iran began in late February. As a result, European gas prices have more than doubled, reaching peak levels not seen since late 2022. The escalating costs are impacting the EU’s competitiveness, leading to increased pressure on governments to support consumers facing soaring bills.
Gas stockpiling has become particularly challenging this year due to elevated near-term prices, which make summertime supply injections less financially viable. Current gas storage levels in the EU stand at just over 70%, significantly below the typical seasonal target of 86%.
To mitigate the crisis, Jorgensen suggested utilizing flexibility in the Gas Storage Regulation to reduce the filling target to 80%. He encouraged member states to implement measures that could support continued gas injections or lower overall gas and electricity demand.
