We do not need a European strategic stock

Energy news: what do you think of the project of the Commission of a new directive on gas stocks, with a mechanism for solidarity between Member States in emergency (1)

Jean-Marie Devos: We already have a directive on security of supply of natural gas which has just come into force - the Member States had until May 19 to the transpose. However, this text provides the meeting of a coordination group for the gas, which also met in January and March to discuss the Ukrainian crisis and the difficulties of supply coming from Russia. On this last point, overall, the situation has not been dramatic, even if it was more difficult for some countries such as the Hungary, the Poland or the Italy. Gas providers have quite managed the situation, including through long-term contracts and interruptibility clauses. In March, the meeting of the coordinating group, the Committee has also stated that there was no real situation of blockade, while saying - but without great enthusiasm - that should be a European debate on the subject.

E.n.: A future proposal for a directive may reinitiate the idea suggested by the former Commissioner Loyola de Palacio to impose strategic stocks (2)

J M.D.: The idea of a compulsory strategic stock would be the most radical measure. And everyone is enough agreement to say that would lead to face a mammoth intractable and very expensive. We do not need a European strategic stock. On the other hand, we can reflect on the idea of a mechanism to monitor such that existing stocks on the territory of the Union are not started more than 50 of the reserve community observation. If some States - this is the case of the Hungary - want to create strategic stocks, is their business. But it cannot impose say that 10 of annual consumption is covered by stocks. Because, to take this example of two neighbouring countries, between the Finland where it would be impossible and the Latvia which has fabulous storage capacities, the situations are very different.

E.n.: Do you think there is a real risk of supply failure

J M.D.: Say that there is no risk or say that there is a greater risk would be an absurdity. Simply, practice shows that, so far, in view of networks and relationships of confidence - that must be maintained at all costs - with major suppliers such as the Russia, it is unlikely that one day a real problem of supply. Delivery contracts have generally well respected. And I repeat: despite tensions that we have seen in the heart of winter, the situation has never been truly dramatic. The condition number one in security of supply, it is the quality of the relationships. But we must remain vigilant, and our industry (suppliers, Editor's note) is ready to discuss with Member States and the Commission.

E.n.: Are Eurogas members concerned about a possible new proposal for a directive of the Commission

J M.D.: They do in any case not show great enthusiasm for new legislation. It must be said that they are already literally submerged by the texts. A directive has just be transposed. Test and note first the current mechanism and how it could be applied. Furthermore, a new legislative proposal could mired in endless discussions...

1. See p. 2.

2 See energies news no. 36, pp. 8-9.

General Secretary, Eurogas (the European Union of the gas natural industry)