vAs energy costs rise, the European Union explores forming a “strategic reserve” of natural gas to counter future crises.

Amid soaring energy prices that have driven up household and industrial costs across Europe, the European Union is considering a coordinated response through a collective purchase of natural gas. One proposal under consideration by the European Commission is to establish a “strategic reserve” of gas, which would be stored and released during emergencies. Participation in this initiative would be voluntary, similar to the EU’s collaborative approach to procuring Covid-19 vaccines. However, such a plan is not expected to be enacted swiftly.

The surge in natural gas prices has been driven by a combination of factors, including a post-pandemic economic recovery that has increased global energy demand, low gas stockpiles due to a harsh winter, and a lack of wind energy generation caused by a prolonged period of calm weather. These challenges have contributed to the highest gas prices in Europe’s history.