According to the Netherlands-headquartered Traffic Family, the country needs to diversify its gas supply to boost energy security and decrease its susceptibility to geopolitical pressure.
Based on an article by the Dutch player, although the Netherlands is currently well-stocked in terms of gas reserves, the gas supply remains vulnerable to geopolitical developments.
The onshore Groningen gas field, discovered in the 1960s, has been a source of gas for the country for a long time. However, after the 2023 decision to close it down following earthquake-induced damage, the country has been facing increasing pressure to switch to sustainable energy sources.
Since the Netherlands imports large quantities of gas from abroad, particularly from Russia and Norway, it is exposed to geopolitical pressure based on the developments in the two countries, the Dutch firm says.
Furthermore, the European Union (EU) has been pushing its members, the Netherlands included, to become less dependent on a single supplier and diversify their energy supply routes, which became even more prominent following Russia’s aggression against Ukraine.
This has led to investments in alternative energy sources and infrastructure, such as liquefied natural gas (LNG) terminals and pipelines. The Union has also taken steps to cut its ties with the Energy Charter Treaty (ECT) which contains mechanisms enabling energy investors, primarily fossil fuel ones, to sue governments for billions over climate policies hampering coal, oil, and gas projects.
According to the Dutch firm, sustainable transition also plays an important role in the discussion surrounding gas extraction in the Netherlands. As a signatory to the Paris Climate Agreement, the country has committed to reducing CO2 emissions and stimulating sustainable energy sources.
All these factors combined make the future of gas supply in the Netherlands uncertain, Traffic Family says. The country will thus have to invest in alternative energy sources and infrastructure to safeguard the gas supply, as well as work with finding more gas suppliers to reduce its dependence on a single source.
Carbon capture and storage (CCS) is considered a bridge to help the world wean off carbon fuels in this context. One of the prominent projects in this regard is the Port of Rotterdam CO2 transport hub and offshore storage (Porthos) project .
During the 2024 Offshore Energy Exhibition & Conference, it was concluded that CCS will happen on a large scale, possibly employing as many people as oil and gas did at its peak.