Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
The Netherlands on June 20 said it would activate the "early warning" phase of an energy crisis plan and lifted a cap on production by coal-fired power plants as it seeks to reduce reliance on Russian gas in the wake of the war in Ukraine.
The Ukraine conflict has pushed several European countries to seek alternatives to Russian oil and gas. The Netherlands, which imported as much as 15% of its gas from Russia, is already buying LNG and cutting back gas consumption, but still may face a shortage this winter.
"With these measures, less money will flow to Putin's war chest," Dutch Energy Minister Rob Jetten said at a news conference in The Hague to announce the moves.
Germany's economy ministry has taken similar action to lift caps on coal energy production.
The Netherlands' removal of the cap on coal-fired energy production is expected to save 2 billion cubic meters (bcm) of gas use per year.
The country had capped production at 35% of capacity at its coal-fired plants to limit carbon dioxide emissions. Jetten said the Netherlands would still meet 2030 climate goals.
The Dutch government also announced plans to produce 2.8 billion Bcm of gas from the Groningen gas field in the year ending October 2023.
That is down from 4.5 bcm in the current production year, but previously the government had indicated close to zero production from Groningen in 2023.
The Netherlands has been winding down production at the field for years due to earthquakes it triggers, but has left open the possibility that production could be increased if households were facing a physical shortage.
The "early warning" phase of the country's three-phase crisis plan, alerts users, regulators and governments to a concrete threat of a gas shortage. The plan also includes "alarm" and "emergency" phases, though it remains unclear how industrial users' gas would be rationed in case of physical shortages.
As of Monday, Dutch gas storage facilities were about 48% full. The government announced a subsidy in May to encourage private companies to fill a key storage at Bergermeer. Its reserves have been filling up by several percentage points per week—not quite quickly enough to meet a target of having them 80% filled before winter.
Recommended Reading
Help Wanted (Badly): Attracting Workers to Energy is Becoming Difficult
2024-03-27 - Attracting workers to the energy industry is becoming a difficult job, despite forecasted growth in the industry.
Stena Evolution Upgrade Planned for Sparta Ops
2024-03-27 - The seventh-gen drillship will be upgraded with a 20,000-psi equipment package starting in 2026.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
E&P Highlights: March 25, 2024
2024-03-25 - Here’s a roundup of the latest E&P headlines, including a FEED planned for Venus and new contract awards.
TotalEnergies Restarts Gas Production at Tyra Hub in Danish North Sea
2024-03-22 - TotalEnergies said the Tyra hub will produce 5.7 MMcm of gas and 22,000 bbl/d of condensate.