EU Commission Chief Proposes Creating Pan-European Strategic Gas Reserves - Reports

MOSCOW, Oct 16 (NNN-Sputnik/RIA Novosti) -- European Commission President Ursula von der Leyen is proposing that EU leaders consider creating pan-European strategic gas reserves amid growing risks associated with winter supplies, reported Sputnik/RIA Novosti quoting a Politico report, citing sources.

Documents related to the November plans to reform the EU's gas security system propose incentivising energy companies to create larger gas reserves, the report said on Thursday. However, they do not explicitly mention the creation of mandatory strategic reserves, the report added.

Although it was not immediately clear to diplomats what form the creation of such reserves might take, a senior EU official described it as a long-term measure intended to safeguard the bloc against future supply-related risks, the report read.

According to the report, existing gas storage facilities in Europe, which are typically filled by commercial companies throughout the year, were filled to record lows this year.

The reason was high summer prices, which removed the economic incentive for businesses to restock. As a result, the European Union was extremely poorly prepared for winter, the report said.

--NNN-SPUTNIK/RIA NOVOSTI