European Commission approves French support for natural gas storage

France's system of financial support for natural gas storage, set up in 2017 to shore up the country's energy supplies, complies with European Union state aid rules, the European Commission said.

"The mechanism complies with EU rules on state aid, since it strengthens the security and diversification of the energy supply without unduly distorting competition," the Comission said in a statement.

France introduced the auctioning system in 2017, which aims to ensure existing gas storage capacities continue to operate, by auctioning storage capacity and coverning the storage operators' costs.

Reporting by Kate Abnett, Editing by Marine Strauss

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