Brussels, 10 January 2025

On Wednesday, 5 February 2025, Gas Infrastructure Europe (GIE) organised its Stakeholder Workshop on “Gas Infrastructure and EU Energy Security: A Fitness Check for Long-Term Sustainability” in Brussels. As Europe advances towards a more sustainable energy future, this GIE workshop sheds light on the crucial role of the evolving role of gas infrastructure in ensuring Europe’s energy security.

Since 2022, the security of gas supply in Europe has seen remarkable progress, driven by proactive measures taken by the EU and its Member States to address geopolitical challenges and reduce dependence on Russian gas. The focus now lies on building a resilient energy system by integrating renewable and low-carbon gases, strengthening sector coupling, and enhancing the interconnection of diverse energy networks.

This workshop aligns closely with the European Commission's recent consultation on the fitness check of the EU energy security architecture (held from September 3 to November 26, 2024) and anticipates the forthcoming revision of the Security of Supply Regulation scheduled for 2025.

Arno Büx, GIE President, said: “Amidst the challenges and the evolving landscape of our energy security dynamics, our gas infrastructure demonstrates resilience and adaptability. This robust infrastructure has proven its capability to address the security of supply issues while accommodating renewable gases, paving the way to a sustainable future. It provides the flexibility to change supply routes, integrate additional LNG imports, and allow for large-scale energy storage. With the right regulatory framework, it will remain a cornerstone of Europe’s energy transition, balancing security and sustainability while supporting the shift toward a low-carbon economy.”

Energy Security in a Changing World: From Fossil Fuels to Renewables

As Europe accelerates its transition to renewable energy, maintaining energy security presents both challenges and opportunities. It is important to recognize that flexibility on the demand side can now count on less options compared to just a few years ago. This results in unpredictable peaks in gas demand, both in terms of size and duration. While power plants have become more resilient to peak gas prices than previously, this shift adds a risk premium to gas prices, reflecting the heightened uncertainty in demand dynamics. Additionally, Dunkelflaute events, which tend to occur during colder temperatures in Europe, coinciding with periods of increased space heating demand, determine a simultaneous driver for higher gas demand, magnifying the power sector demand peaks.

The decline in demand-side flexibility requires increased flexibility on the supply side, which, in addition to transmission pipelines interconnections, comes from storage and LNG terminals, working in tandem to complement each other.

Low storage levels at the end of winter usually lead to higher demand for storage injections during the following summer, exerting upward pressure on summer gas prices. This leads to a narrowing summer-winter spread for the following storage year. This means that the storage value and the willingness of traders to book expire. If the summer-winter spread for the storage year 2025/2026 does not recover, this will jeopardize both storage marketing and the market-based filling of storage capacities.

This shift must be supported by a resilient infrastructure that can handle renewable sources and the geopolitical risks affecting supply chains. Strengthening energy networks, and fostering international cooperation will be key to safeguarding Europe’s energy needs while advancing decarbonisation goals.

Monika Zsigri, Head of Unit responsible for Energy Security and Safety at DG ENER, explained: “As we transition away from fossil methane, we must carefully assess infrastructure investments—how to repurpose, reuse, or phase out assets in an orderly manner while considering security of supply and geopolitical implications. Sector integration is key, as gas and electricity systems become more interdependent. We must enhance flexibility through different tools, such as hydrogen, storage, and demand-side measures while ensuring energy security with diversified supply and resilient infrastructure. A dynamic regulatory framework, mindful of technological shifts and geopolitical risks, is essential. Open dialogue with stakeholders will shape a streamlined, adaptive energy security strategy that supports both economic development and the broader energy transition."

EU Energy Security Fitness Check

A comprehensive assessment of the EU’s energy security strategy is essential for evaluating the current policy landscape and identifying future requirements. Furthermore, long-term stability is vital to ensure that infrastructure can significantly contribute to enhancing energy security and facilitating the transition to cleaner energy sources.

However, this long-term vision is lacking in storage-related policies, with insurance-related measures in several countries set to expire by 2027, leading to a regulatory and normative gap.

If policies are not extended or adapted to reflect the changing energy market conditions, security of supply (SoS) could be at risk. This is particularly concerning at a time when energy systems may require more flexible and reliable storage solutions to manage both seasonal variations and the increasing demand for daily adjustments. Any shortfall in the necessary stored energy volume could have cascading effects on the electricity system, while disruptions in the electricity system could, in turn, impact the energy system as a whole. State interventions related to storage must also take into account their effects on the gas market and the potential negative impact on wholesale prices, which could further undermine the value of storage.

These actions are crucial for meeting the EU’s long-term sustainability goals and securing a resilient energy supply as Europe transitions to sustainable sources.

“To ensure a stable and secure energy supply while addressing the needs of society as a whole, it is essential to promote market-based instruments that integrate both arbitrage and insurance/system value, alongside appropriate regulatory measures”, as mentioned by Charlotte Roule, President of Gas Storage.

Gas Infrastructure and Its Role in Ensuring Security of Supply

While supporting the shift towards renewables, gas infrastructure remains a critical pillar of Europe’s energy security. Existing assets, including pipelines, LNG terminals, and underground storage, can be adapted to support renewable and low-carbon gases. Gas infrastructure's vital role in stabilising energy supply during peak demand and emergencies underscores their robustness and reliability.

Luis Ignacio Parada, President of GLE, reminded: “Over the past three years, European LNG terminals have played a crucial role in ensuring security of supply amid unprecedented energy challenges. By significantly expanding regasification capacity, enhancing infrastructure resilience, and diversifying gas supply sources, these terminals have helped mitigate the impact of supply disruptions, particularly following the reduction of pipeline gas imports from Russia. The rapid deployment of Floating Storage and Regasification Units (FSRUs) in key locations has further strengthened Europe's energy flexibility, enabling swift adaptation to changing market conditions. As a result, LNG terminals have not only safeguarded energy security but also reinforced Europe's position in the global LNG market.”

Anna Slavkovská, GIE Area Sponsor, concluded: “The versatility and resilience of the gas infrastructure are indispensable to Europe's energy security. It not only addresses current supply challenges but also supports our transition to a sustainable energy future. Long-term stability is essential to ensure that storage can play a crucial role in balancing supply and demand, enhancing energy security, and supporting the transition to cleaner energy sources. This is especially concerning at a time when energy systems may require more flexible and secure storage options to address both seasonal fluctuations and the growing need for daily fluctuations.”