Overview

The Netherlands is the third-largest producer of gas in Europe behind Russia and Norway, and ranks 11th in the world. It is also a net exporter of gas, ranking sixth in the world in gas exports.

The Netherlands acts as a gas hub for northwest Europe, importing LNG as well as piped gas from Norway, the UK and Russia which competes with gas produced from the country’s own fields. This diversity of supply enables the market to supply gas at competitive prices. The Dutch government is keen to encourage this and hopes the Netherlands will become a gas ‘roundabout’, acting as a market where gas will be imported and re-exported to the rest of Europe.

Dutch gas production is falling, and the reserve-to-production ratio is estimated to be 12.4 years, according to the 2014 BP Statistical Review. The Netherlands is expected to shift from being a net exporter to a net importer of gas around 2025, according to the International Energy Agency.

Anticipating future import dependence, the Dutch government is investing in gas infrastructure projects - including international pipelines and storage facilities. This will ensure security of supply and foster an attractive gas market where European energy suppliers will find the most competitive prices.

The Netherlands’ gas reserves are concentrated in Groningen, one of the world’s largest gas fields. It has been in production since 1963 and had recoverable reserves estimated at just under 1 trillion cubic metres in 2011. However, the Dutch government has been forced to impose production limits on the field because of widespread damage to the region caused by earthquakes triggered by drilling.

The country also has a number of small fields; production from these is given priority to ensure Groningen’s longevity. The Netherlands still has many years of conventional gas production, and the prospect of developing unconventional reserves could see production extended to the middle of the century. However, population density and public opposition will present obstacles to setting up an unconventionals industry.

Page updated: 01/03/2013