The Dutch government plans to make up to €1 billion available to support gas storage in 2027 in the event that market conditions leave private operators unable to fill storage facilities sufficiently ahead of the winter of 2027-28.
In a statement, the government said that gas supply security for the winter of 2027-28 is expected to be guaranteed even in the event of a cold winter, provided sufficient gas is available in storage. It has therefore set out measures to ensure that storage facilities are adequately filled before the next major winter demand period.
Energy crises
‘The revision is based on lessons learned from recent energy crises (Ukraine and the Strait of Hormuz) and on lower gas extraction in the Netherlands itself,’ it said. ‘The role played by the safety regions in the event of a potential gas crisis has also been elaborated in more detail.
‘Furthermore, the implications of gas outages for other critical sectors, such as electricity production, the chemical industry, and healthcare, have been mapped out.’
The Netherlands’ EU gas-storage replenishment target for 2027 is 103 TWh. Under difficult market conditions, EU rules allow the country to deviate from the target by up to 10 percentage points. The Dutch government said that approximately 70 TWh has been withdrawn from gas storage each year on average over the past five years to meet winter demand.
EBN mandate
The government intends to give EBN, the Dutch state-owned energy company, a mandate to store up to 80 TWh of gas during 2027 where the market does not do so itself. Up to €1 billion in subsidy funding will be made available for the measure, however this budget may not need to be used in full.
The government said the market remains the first mechanism through which gas should be stored. EBN would intervene only to the extent necessary to ensure adequate storage levels if market conditions make commercial storage unattractive.
The government said the measure is designed to provide additional security in circumstances where wholesale-market conditions discourage companies from buying and storing gas. If private market participants fill storage facilities sufficiently, EBN would not need to use the full allocation.
‘For the time being, 2027 is the last year with an EU replenishment target,’ it noted. ‘A comprehensive revision of the European legislative framework for energy security, which also covers security of gas supply, is expected shortly.’ Read more here.
