The clock is ticking for Europe's energy security, with just four months until winter and a critical need to refill gas storage tanks. This year, the market alone won't suffice, and Europe must confront the reality that filling storage before winter is not just a market option but a security obligation. This realization is particularly striking given that Europe has traditionally relied on market dynamics to manage its gas reserves, leaving the task to traders who buy cheap gas in summer and sell it in winter. However, the current situation, marked by the Strait of Hormuz closure and a gas storage level at just 35 bcm, highlights the need for a more proactive approach. Europe must now rediscover what Ukraine has long understood: filling storage before winter is a matter of survival and continuity, not just a market strategy. Ukraine's experience, which has involved requiring suppliers to hold an insurance stock and activating emergency-level gas crisis regimes, offers a compelling model for Europe. By stress-testing its system under deliberate destruction, Ukraine has demonstrated that excess reserve capacity and alternative routes can ensure gas withdrawal and return to the EU border even under attack. This is a critical lesson for Europe, which is now debating the Ukrainian argument. Germany, in particular, is leading the charge with a proposed 'combination model' for security of supply, suggesting a central body hold a reserve and release it only in a crisis. This proposal, while specific to Germany, essentially mirrors Ukraine's non-commercial insurance reserve model, which is already an established EU practice in countries like Austria and Hungary. Europe has only 146 days to secure reserves before the consumption season begins. The European Commission must act swiftly, treating a strategic, insurance-grade reserve not as a market distortion but as the premium for insuring the system. Building this reserve on a European scale, rather than a national one, is essential for solidarity. Additionally, Europe should leverage existing capacity, such as Ukraine's substantial storage capacity, which can be secured through the Commission's AggregateEU mechanism. In conclusion, Europe must embrace a more proactive approach to energy security, recognizing that filling storage before winter is not just a market option but a critical security obligation. By learning from Ukraine's experience and adopting a European-scale reserve, Europe can ensure a more resilient and secure energy future.
