The Netherlands is facing a challenge: how can we guarantee sufficient supply of natural gas both now and in the future, now that the Groningen field is no longer active and imports of Russian gas have ceased? Global demand for liquefied natural gas (LNG) also currently exceeds supply, which means security of supply is no longer a given. Gasunie Transport Services (GTS) is being assigned the statutory duty to give annual advice on the security of natural gas supply and has therefore developed a vision that will be presented to the Ministry of Economic Affairs and Climate Policy this week.

GTS’ vision emphasises the importance of proactive measures to guarantee the security of natural gas supply in the short and long term, while factoring in the challenges presented by the current market and changing climatic conditions. The vision still features an important role and responsibility for market parties, but does propose several extra market rules allowing for intervention if deemed necessary to guarantee security of supply.

Gas storage facilities and sufficient gas supply

A continuous sufficient gas supply and well-filled gas storage facilities for the winter periods are needed to guarantee security of supply. The Netherlands currently depends on imports for 75% of its gas consumption. Given the closure of the Groningen field and declining domestic production, this dependence will become even greater. The Netherlands would therefore benefit from a well-functioning European internal gas market, as would other EU member states.

Additional statutory measures to fill gas storage facilities

As of mid-2022, supply from Russia to north-western Europe has ceased almost entirely. This is being compensated for by maximum imports from Norway and maximum LNG supply through Gate terminal (Rotterdam) and EemsEnergyTerminal throughout the year. This supply covers basic demand, but can barely make an additional contribution in winter. Since LNG supply is stable over the course of the year, it is not sufficient to allow for seasonal flexibility. All in all, this means that seasonal storage facilities will be the primary source of seasonal flexibility in the years to come, even more so than in previous years. Although market parties determine gas flows, commercial motives are sometimes at odds with guaranteeing security of supply. Several additional statutory measures are therefore proposed, such as establishing a statutory standard filling level for seasonal storage facilities that market parties need to adhere to. This could also see the government designate a party to act as back up in the event that the market parties do not meet their obligation on time.

The role of LNG supply

The vision also shows that a capacity shortage could occur in the next two gas years in the event of gas flows being interrupted. To create sufficient supply for the long term, expanding LNG import capacity, as is currently happening at Gate terminal and the German terminals, remains crucial for security of supply. Existing LNG plants will also need to remain available.

If the coming winters are colder than average, seasonal storage facilities will be relatively empty after the winter, meaning there will be a realistic chance of insufficient supply capacity the following summer and possibly an insufficient supply volume in order to fill seasonal storage facilities back up to the standard filling level.
GTS has set out its vision in a document that focuses on the balance between maintaining security of supply and allowing market forces to operate in a changing gas supply landscape. In close collaboration with the Ministry of Economic Affairs and Climate Policy and other relevant stakeholders, GTS is making every effort to create a sustainable and reliable gas supply for the Netherlands.

About Gasunie

Gasunie is a European gas infrastructure company. The company provides the transport of natural gas and green gas via its subsidiaries Gasunie Transport Services B.V. (GTS) in the Netherlands and Gasunie Deutschland in Germany. The company also offers other services in the gas infrastructure field, including gas storage and LNG.