By Kate Abnett
BRUSSELS - Negotiators from European Union countries and lawmakers on Thursday clinched a deal on a law to fill Europe's gas storage ahead of winter, as they attempt to build a supply buffer and prepare for possible disruptions to Russian flows.
Russia supplies 40% of EU gas and last month cut supply to Poland and Bulgaria after they refused to pay for the fuel in roubles. Gas powers factories, heats homes and produces electricity across Europe, and countries are racing to fill storage to protect against potential supply shocks.
The deal would require EU countries to jointly fill gas storage at least 85% by November this year and in 2023, and to 90% in 2024 and 2025. EU gas storage is currently 41% full.
Each country must put in storage enough gas to cover 35% of its annual consumption over the last five years. That system is designed to lessen the burden on countries with large gas storage sites, after Hungary, Austria and the Netherlands had raised concerns that their companies would be forced to buy large volumes at near-record gas prices, while those in countries with little storage would not.
Countries without storage facilities would need to store enough fuel in other states to cover 15% of their annual gas use. Cyprus, Malta and Ireland, not connected to other countries' gas networks, are exempt.
"What is at stake here, is securing gas supplies for next winter for all Europeans," said parliament's lead negotiator, former Polish prime minister Jerzy Buzek.
Liquefied natural gas and stored fuels like oil can count towards the targets.
Countries must also certify storage site owners to check whether they pose energy security risks - a move aimed squarely at Russian's Gazprom, which has recently kept its European storage sites at unusually low levels. Operators denied certification must relinquish ownership or control of them.
Concerns about Russian supply have already prompted EU firms to refill storage after winter at record speed, despite sky-high gas prices.
EU countries and the European Parliament must each formally approve the deal. Parliament is due to vote on it next month.
(Reporting by Kate Abnett; Editing by Mark Potter)