Member States’ ambassadors to the European Union (‘Coreper’) failed to reach a political agreement (‘general approach’) on the proposed revision of the EU Regulation (347/2013) on the Trans-European Energy Network (TEN-E), on Wednesday 2 June, due to continuing divisions over the issue of mixing hydrogen with methane.
According to our information, the ambassadors did not discuss this point, preferring to debate it later. This issue could therefore be discussed at the next ambassadors’ meeting on Wednesday 9 June, but might also be left to the Energy Ministers. The latter will meet on 11 June at an Energy Council of the EU with the aim of adopting a general approach.
Modernisation of gas infrastructure
Obtained by EUROPE, the latest draft compromise presented by the Portuguese Presidency of the EU Council ahead of the ambassadors’ meeting provides, in particular, for a “transitional period” for ‘retrofitted’ gas assets.
The Presidency defines ‘retrofitting’ as “the physical upgrade of existing natural gas infrastructure for transport of blends of natural gas with hydrogen or biomethane, for the transport of renewable gases only”.
According to the Portuguese proposal, upgraded gas infrastructure projects could therefore be covered by the TEN-E Regulation until 31 December 2029 and thus be eligible for the status of project of common interest (PCI), which gives access to the possibility of receiving EU funds.
However, this possibility, as well as the definition of ‘retrofitting’ strongly divides the Member States, leading eleven of them to issue a non paper to express their opposition (see EUROPE 12731/9).
Exemption for Cyprus and Malta
Another problematic point concerns the Presidency’s proposal to apply an exemption from the revised TEN-E Regulation in the case of Cyprus and Malta until these two island states are directly interconnected to the trans-European gas network.
According to this exemption, projects under development or planning which have already been granted PCI status under the Regulation, and which are necessary to ensure the permanent interconnection of Cyprus and Malta to the trans-European gas network, will retain their PCI status in the revised Regulation.
See the Presidency’s draft compromise: https://bit.ly/3i8Lk1n (Original version in French by Damien Genicot)