The European Commission enforces full transparency on gas contracts

A new regulation requires gas companies to declare the origin, volume and duration of their contracts, as the EU prepares to end Russian imports.

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Regulation (EU) 2025/1733 introduces a set of binding measures to ensure transparency regarding the origin of natural gas supplies within the European Union. Approved in September, the text extends storage obligations until 2027 while imposing new reporting requirements on companies. It mandates systematic submission to authorities of data related to volumes, contractual durations and countries of origin for gas stored within EU territory.

Enhanced traceability to prevent origin laundering

These measures come as the European Commission finalises the legal framework aimed at banning all new contracts with Russian suppliers from 2026. The new regulation requires traceability systems capable of tracking the supply chain to detect practices of rebranding Russian molecules via third countries or intermediaries. In practice, this places storage operators and importers under increased scrutiny, with penalties in place for non-compliance.

Reporting obligations for energy companies

Industry players will be required to file an annual detailed declaration with national regulators and the Agency for the Cooperation of Energy Regulators (ACER). These reports will include contractual counterparties, receiving terminals and transport arrangements. The Commission specified that this data would be aggregated to preserve commercial confidentiality, but targeted audits may be carried out in cases of suspected non-disclosure or fraudulent origin.

Impact on long-term contracts and LNG flows

The new rules are already affecting long-term contract negotiations, particularly in the liquefied natural gas (LNG) segment. Some suppliers, mainly based in the Middle East and North Africa, are now requesting specific clauses guaranteeing compliance with EU traceability standards. Meanwhile, several European buyers are restructuring their portfolios to avoid legal risks linked to indirect exposure to Russian gas.

A step towards phasing out Russian hydrocarbons in the EU

This regulatory framework is part of the broader REPowerEU plan, which aims for a complete phase-out of Russian hydrocarbons by the end of 2027. By strengthening control mechanisms and contractual obligations, the Commission seeks to legally lock in the energy decoupling goal. The text also provides for enhanced cooperation between Member States on information sharing, particularly in the case of complex cross-border flows.

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