Gasunie explains LNG-backed energy security plan now that Dutch Groningen field is shut

Dutch utility Gasunie , whose network and assets include over 17,000 kilometres of pipelines in the Netherlands and northern Germany as well as stakes in Dutch and German LNG import facilities, has explained its energy security plan now that the Groningen gas field in the Netherlands is no longer active and imports of Russian gas have almost ceased.

Gasunie noted that global demand for LNG also currently exceeds supply, which means security of supply is no longer a given.

The utility said that Gasunie Transport Services (GTS) was being assigned the statutory duty to give annual advice on the security of natural gas supply and has drawn up a plan that was being presented to the Dutch Ministry of Economic Affairs and Climate Policy.

“The 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,” Gasunie explained.

“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,” the report added.

Gasunie has LNG import facility stakes in the Dutch Gate terminal in Rotterdam and the Eemshaven import hub in Groningen.

The utility is additionally involved in the German natural gas market and in developing the onshore LNG terminal in Brunsbüttel on the Elbe.

“A continuous sufficient gas supply and well-filled gas storage facilities for the winter periods are needed to guarantee security of supply,” said the report.

“The Netherlands currently depends on imports for 75 percent of its gas consumption,” it noted.

“Given the closure of the Groningen field and declining domestic production, this dependence will become even greater,” Gasunie stated.

“The Netherlands would therefore benefit from a well-functioning European internal gas market as would other EU member states,” the utility added.

There are also now likely to be additional statutory measures in the 27-nation EU to fill gas storage facilities.

As of mid-2022, supply from Russia to northwest Europe ceased almost entirely.

This is being compensated for by maximum pipeline gas imports from Norway and maximum LNG supply through the Gate terminal and the EemsEnergy Terminal throughout the year.

“This supply covers basic demand, but can barely make an additional contribution in winter,” said Gasunie.