EU set to ease gas approval rules to secure supplies

The European Commission will instruct governments to be flexible in enforcing EU rules on gas imports, diplomats told Reuters on Thursday (12 March), a move likely to benefit imports from Azerbaijan.

The Commission plans to issue guidance before 18 March on how to apply European Union rules aimed at phasing out Russian gas, the diplomats said.

Brussels is issuing the guidance to ensure the EU’s rules phasing out Russian gas do not unintentionally disrupt Europe’s energy supply.

Some countries had warned the rules could delay deliveries needed to keep supplies steady during the Iran crisis. However, the guidance would not affect the EU's phase-out of Russian gas.

With the Iran conflict rattling global liquefied natural gas (LNG) flows and raising the risk of cargo diversions, EU officials fear rigid enforcement could delay shipments, undermining the bloc's ability to keep storage adequately stocked.

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Prior authorisation rules and temporary easing

The rules require shipments of pipeline gas or LNG from certain non-Russian countries to obtain “prior authorisation”. This means companies must give European customs authorities proof of the gas’s origin five days before it arrives in the EU.

The country most likely to be affected by a softening of the “prior authorisation” rules would be Azerbaijan, which last year supplied around 4% of EU gas imports. Azeri gas reaches Europe via Türkiye, which is itself a large importer of Russian gas.

Italy and Greece are among the EU countries that import gas from Azerbaijan through the Southern Gas Corridor pipeline.

Diplomats said the guidance could also help the EU source LNG from new suppliers if disruption in global markets makes it difficult for countries to meet their gas needs from existing partners.

The EU has already said its main gas suppliers, including Norway and the U.S., will not face the prior authorisation rules, as the bloc considers the risk of Russian gas entering their exports to be low.

Europe's gas industry has also urged Brussels to temporarily suspend the prior authorisation rules.

"We simply cannot afford that a single flexible LNG cargo is delayed in port, stranded at sea, or rerouted to Asia because prior authorisation is unclear or pending," industry group Eurogas said.

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EU gas emissions Azerbaijan Middle East Iran Russia Politics Trump