Europe could use LNG to build strategic gas reserves – Reuters

According to Reuters columnist Ron Bousso, the European Union may get an opportunity to build up natural gas reserves. In his opinion, the current market situation allows the bloc's member states to establish a system of fuel storing, building up reserves during periods of low prices. Given the growing global tensions, the existence of reserves will help prevent energy crises.

Europe already has underground storage facilities that can accommodate up to about a quarter of annual gas consumption. However, the expert notes, the current system of managing reserves through commercial mechanisms demonstrated its vulnerability during the 2022 energy crisis.

Bousso believes that the EU could create a state-owned gas storage system with independent management and budget financing. He estimates that a reserve of 20 billion cubic meters of liquefied natural gas (LNG) would be enough to provide reliable outage protection. This amount of fuel would be enough for 2 months. During this period of time, new LNG cargoes can be diverted to the region. At current prices, the cost of the project is estimated at $7 billion, which seems to be a large but reasonable investment in the energy security of the region.