7 questions about gas storage in the Netherlands

The Netherlands has four major gas storage facilities, in Norg, Grijpskerk, Alkmaar and Bergermeer. These are all depleted gas fields specially prepared to handle gas storage. Together, the four storage facilities can store a total of 14 billion cubic metres of natural gas. The gas stored in these facilities is intended as seasonal reserves.

Depending on the severity of the winter, 7 to 11 billion cubic metres of natural gas are withdrawn from the seasonal reserves. The total annual gas consumption in the Netherlands is around 30 billion cubic metres, so it is evident that gas storage plays a vital role in supplying energy in the winter.

Alongside this seasonal storage there is another type of storage. To balance periods of high and low gas demand during the day, we use natural gas reserves stored in salt caverns deep underground. When everyone turns on their central heating in the morning, or if the wind drops and gas-fired power stations need to produce electricity quickly, additional gas is drawn from these salt caverns. Because this gas is only needed to balance fluctuations over the day, these sites store smaller volumes than the seasonal storage facilities.

In recent years, the importance of gas storage has increased significantly. This is because the large gas field in Groningen has been permanently closed. That field not only produced a large amount of gas but also provided flexibility: gas extraction could be ramped up in the winter and then scaled back down in the summer. Now that the field is closed, that flexibility is no longer available.

Another thing is that, since the start of the war in Ukraine, the supply of Russian gas has virtually ground to a halt. To ensure that it still has a sufficient supply of natural gas, the Netherlands has increased its imports from Norway. More gas in the form of liquefied natural gas is also being shipped in through LNG terminals. The level of gas imports that arrive by pipeline and through LNG terminals remains the same year-round.

Domestic natural gas production is still occurring. However, together with imported gas coming in by pipeline and in the form of LNG, it’s still not enough to meet the higher demand in the winter. Without our gas reserves, we would face a gas shortage in the winter.

On 1 November, at the start of the winter season, the Dutch seasonal storage facilities held around 10 billion cubic metres of gas. That’s somewhat less than the 11 billion cubic metres recommended by Gasunie Transport Services to ensure that the country can face even the coldest winters.

The Dutch government requires that seasonal storage facilities be at least 80% full by 1 November, which means a volume of around 10.4 billion cubic metres. The Netherlands was just below that threshold this year. In a normal winter this isn’t a problem, but in a severe winter it can pose a risk.

If it gets really cold and we see an impending natural gas shortage, there are several ways to stave that off. Gas can be withdrawn from the salt caverns near Zuidwending in the Netherlands, as well as from the caverns near Epe and Etzel in Germany. In addition, more pipeline gas can be imported from the UK or Belgium. These additional volumes would prevent a gas shortage, though this would also result in higher gas prices.

That has to do with the workings of the free market. Generally speaking, the price of natural gas is lower in the summer than in the winter. It is profitable for energy companies to buy cheap natural gas in the summer and sell it at a higher price in the winter.

However, there was less of a spread between the price of summer gas and winter gas this year. For many companies, it was more attractive to immediately resell gas purchased in the summer rather than storing it for the winter.

This is done by market parties. GasTerra is a major player and has exclusive rights to the gas storage facilities in Grijpskerk and Norg. Commercial energy companies such as RWE, Engie, Vattenfall and Essent are also active and either store gas themselves or outsource this. If you want to supply natural gas to households and businesses in the Netherlands, you need a permit from the regulatory authority, the Authority for Consumers and Markets (ACM). You’ll only be granted this permit if you can also supply gas in winter, and if you want to supply gas in winter, you’ll need to have gas reserves stored.

If the commercial market participants fail to store sufficient winter reserves, the state-owned company Energie Beheer Nederland (EBN) takes over that role. And since the filling fell short last year, the Ministry of Climate Policy and Green Growth has instructed EBN to store additional gas in Bergermeer.

Gasunie Transport Services is responsible for the transmission of natural gas. They do not extract gas, trade in gas, or own any gas storage facilities. As an infrastructure company, Gasunie manages the gas network, though not the filling of the gas storage facilities.

Gasunie Transport Services additionally has the statutory duty to provide an annual advisory report on the security of gas supply. Gasunie also highlights geopolitical developments that could affect gas supply. Furthermore, there are EU Regulations concerning gas storage. Each Member State must ensure that the reserves are filled to the mandated fill level and must impose this on market participants through legislation.

Absolutely. Even though the annual volume is decreasing, that doesn’t automatically mean we need less storage capacity. Harsh winters can still occur even in a warming climate, presenting peaks in demand for natural gas.

Gas storage facilities can also play a role in storing strategic gas reserves to be used in the event of a prolonged disruption to the gas supply. Increasingly more attention has been paid to strategic reserves over the past period. In 2022, when Russian gas disappeared from the market, the EU saw what happens when a major supplier suddenly drops off and the strategic reserves are insufficient to meet demand. Though in this case the market found a new balance, this was accompanied by high prices, inflation and economic damage.

By implementing special technical measures, existing gas storage facilities could also accommodate strategic reserves. Gasunie is developing a vision for the resilience of the natural gas system and is investigating the possibilities for strategic reserves.

And even once the era of natural gas is behind us, gas storage facilities will still be needed. The future sustainable energy system, too, will still include gas, only it will no longer be natural gas. Everything we at Gasunie currently do with natural gas – transmitting, storing, balancing – we will soon be doing with sustainable gases such as hydrogen and biomethane.