German regulator signals EU may ease gas storage mandates

Speaking on Montel’s Plugged In podcast, Müller said there was growing political momentum in Brussels to revise the current mandates. “We have seen the debates in Brussels where France, Germany and others argued for at least lowering the storage goals and I think that we are going to see some action in the near future on it,” he said.

Having been introduced in 2022 following the collapse of Russian gas imports, the current targets require EU member states to refill storage levels to 90% ahead of the winter season. While these rules were originally seen as vital to energy security, critics now argue they are dampening market incentives and contributing to unusual price behaviour.

Since late last year, gas prices for summer delivery have been trading at a premium to winter – which is a reversal of typical seasonal pricing. This has led to concerns that mandatory refilling obligations are skewing market signals.

“The storage goals were necessary when they were introduced,” Müller acknowledged. “But what we now see is that yes, there are distortions, there are some incentives which are not working right.”

Müller also warned against excessive reliance on state intervention to maintain market balance, adding: “It’s not a smart thing to rely on the state to step in at any cost.”

Recent investment patterns in the TTF gas market, including a surge in speculative net-long positions, have intensified the debate. Some analysts argue that traders are betting on eventual state subsidies to prop up storage levels – a trend Müller finds troubling.

“It makes me nervous,” he said. “It’s not something which gives me trust that everybody is doing their job at the moment.”

With coalition talks still ongoing following Germany’s recent elections, Müller confirmed he would be voicing his concerns directly to the incoming energy minister.

The full interview is available on Montel’s Plugged In podcast.

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