• Some countries worried targets push up gas prices
• EU states, lawmakers must negotiate final rules
• Gas storage levels well below levels one year ago

BRUSSELS, March 5 (Reuters) - The European Commission proposed on Wednesday retaining the EU's gas storage requirements and targets for two more years, despite concern among some countries that the goals are pushing up gas prices.

The proposal said the EU executive favoured keeping until 2027 a target to fill EU gas storage caverns to 90% of capacity by Nov. 1 each year, plus a series of intermediate targets in the months leading up to November.

The proposal will now be negotiated and approved by EU countries and the European Parliament.

The Commission proposal said the Nov. 1 target would remain binding, but it said the targets in earlier months are "indicative" - which, in EU legislation, typically means not binding.

"These targets are indicative and should allow for storage filling in such a way that there is sufficient flexibility available for market participants throughout the year," it said.

The gas storage goals were introduced in 2022 after Russia slashed gas deliveries, to ensure EU countries had a buffer of stored fuel during the winter months when gas demand for heating peaks.

But they have proved divisive in recent weeks, and countries including Germany and the Netherlands have called for the EU to soften its strict filling deadlines. They and other countries plan to seek more flexibility in the targets, in upcoming negotiations with EU lawmakers to finalise the goals.

These countries warn that the EU's fixed targets signal to the market that European buyers are obliged to buy, driving up gas prices and leaving a hefty bill for countries with large storage caverns.

EU benchmark gas prices rose to two-year highs last month.

The Commission proposal did not include changes to the filling targets for 2025, despite countries including the Czech Republic requesting this.

Instead, the Commission recommended that countries make use of existing flexibilities in the rules, and said it may be more lenient towards countries that miss their November target because of conditions in the gas market.

EU gas storage sites are now 38% full - far below the 62% level at the same time last year - after cold weather and reduced Russian supplies caused a faster drawdown of stocks, Gas Infrastructure Europe data shows.

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https://www.reuters.com/business/energy/eu-proposes-keeping-gas-storage-filling-goals-until-2027-2025-03-05/