Netherlands still vulnerable over natural gas supply; Energy conservation still needed

The Netherlands remains vulnerable when it comes to the supply of natural gas, warned Hans Coenen, an executive board member at Gasunie, in an interview with the Telegraaf published on Tuesday. Gas prices are now much lower than before, but according to Coenen, "vigilance and continuous energy saving" remain necessary.

"There is no guarantee that everything will continue to go smoothly during a very cold winter," he told the newspaper. Prices could then simply increase again. "We remain vulnerable. Take the Chevron strike in Australia, and at the same time, unexpected maintenance on our pipeline to Norway, by far our largest supplier. The price immediately rises," he said, referring to market developments from earlier this year.

Gasunie operates the transportation and gas storage for all of the Netherlands and parts of Germany. Coenen has been the executive in charge of projects related to national and international gas infrastructure, and energy transition, since April.

His biggest concern is that a blockage will occur somewhere in the supply system, such as with the Norwegian pipeline. "If Norway fails, we will still have some gas in Dutch offshore fields, but the permitting process will take a long time. And all those fields together are completely insufficient to provide us and the European markets with a structural supply. That Norwegian pipeline must be maintained, one way of the other."

After the outbreak of the war in Ukraine, the supply of Russian gas to Europe virtually came to a standstill. This initially caused significant price increases, but these have disappeared in part due to increased deliveries of liquefied natural gas (LNG). Prices fell even further earlier this month due to the mild winter weather.

There is sufficient gas in stock for the time being, but that is no guarantee for the future. "There is gas, there is liquidity in the market, but it is also suspenseful," Coenen told Telegraaf. "If the gas storage facilities are emptied this winter, you will have a problem for next winter. You will not be able to fully replenish them before next summer."