The Netherlands is struggling to fill its gas storage ahead of the winter season due to a sharp rise in gas prices that began after the US-Israeli war against Iran and disruptions to shipping in the Strait of Hormuz. According to Jeroen Zanting, head of gas transport company Gasunie, the country's authorities may be forced to intervene in the coming weeks to meet fuel storage targets.
“By the end of June or early July, the rate of filling gas storage could be so low that the Netherlands risks not being able to meet its targets,“ he said during a parliamentary briefing on energy security. Under current regulations, gas storage facilities must be 87% full by November 1.
According to Zanting, rising gas prices have made purchasing and storing fuel at current market prices less attractive for companies. In this regard, the head of Gasunie proposed expanding the powers of state-owned energy company EBN over gas supplies, as well as considering subsidizing energy companies, similar to the measures used during the crises in 2022 and 2023.
Currently, private companies are largely responsible for filling gas storage facilities, but EBN could step in if purchases are insufficient. The companies have been set a target of injecting 80 TWh of gas by 2026, up from 25 TWh the previous year.
However, EBN spokeswoman Nikolin Vrijsloot van Eck warned that public procurement should not further increase market prices. “We need to approach the task of filling gas storage carefully. If we start buying maximum volumes now, it will affect fuel prices. We certainly want to avoid that,“ she noted.
Gas injection in the Netherlands for the winter season started in early April, but due to supply disruptions and cold weather, gas storage capacity is currently only 12%. Gasunie also proposed the creation of a strategic gas reserve in case of serious disruptions or prolonged interruptions in fuel supplies to the Netherlands.