Commission may force EU to store natural gas

The European Commission is considering new laws to force EU states to store natural gas to meet the threat of a future energy crisis.

It also wants to create a single EU energy grid and possibly an EU regulator to replace the patchwork of national systems across Europe. The proposals are contained in a green paper on energy due to be published tomorrow by energy commissioner, Andris Piebalgs, in response to concerns over the security of energy supplies and a lack of competition in Europe's energy markets.

A draft of the paper seen by The Irish Times shows the commission is proposing new legislation to ensure member states can react to short-term oil and gas shortages.

"Recent experience has raised important questions, including whether Europe's gas stocks can meet the challenge of shorter term supply disruptions," says the paper, which was prepared in the wake of Ukraine-Russia gas dispute in January that temporarily halted gas supplies to several EU states.

Earlier this year Ireland was singled out as one of several member states that had no reserves of liquefied natural gas to meet a temporary supply crisis.

The paper pinpoints three critical areas that need to be addressed through a common energy policy: security of supply; competitiveness; and environmental protection.

It calls for measures to tackle the EU's rising dependence on imported energy, which is likely to increase to 70 per cent within 20-30 years, up from 50 per cent today.

These should include reducing energy consumption, diversifying the EU energy mix with a greater focus on renewable energy and equipping the EU to cope with emergencies better.