The European Commission on Monday proposed extending measures to reduce gas consumption by a target of 15% across the European Union until March 2024.
Collective efforts to reduce gas demand have been key to getting through this winter safely, EU Energy Commissioner Kadri Simson said in a statement.
EU countries pledged to cut their consumption by at least 15% compared to the average of the past five years last summer after Russia drastically reduced imports to the bloc.
Good progress has been made in diversifying supply and reducing the bloc's dependence on Russia but global gas markets are likely to remain tight in the coming months, Kadri said.
Continuing to save gas should also help to refill gas storage facilities to 90% by November, the commissioner added.
The savings target, which was exceeded in recent months with a demand reduction of over 19% on average across the EU, is currently set to expire at the end of the month.
EU energy ministers are to approve the extension at their next meeting in Brussels on March 28.
The price of European natural gas fell below the €40 ($43) per megawatt hour (MWh) threshold on Monday - the lowest price since July 2021.
In the morning the TTF benchmark contract for delivery in one month dropped to €39.65.
Natural gas prices rose dramatically throughout last year due to Russia's invasion of Ukraine. At its peak, prices were more than €300, following a long period where prices hovered around €20 per MWh.
The high dependency on Russian gas led to an energy crisis.
In recent months however the price for natural gas dropped noticeably. One reason for the drop is that gas storage facilities are full and temperatures have been warmer than usual.
The current fear of a potential banking crisis is likely to push prices lower, since financial crises generally have a negative impact on the economy, resulting in lower demand for energy.
