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Netherlands

Table of Contents
  1. 1. Introduction
  2. 2. Key Statistics
  3. 3. Gas Demand
    1. 3.1. Total Primary Energy Consumption per fuel
    2. 3.2. Gas demand per sector
  4. 4. Gas Supply
    1. 4.1. Gas reserves
    2. 4.2. Exploration and production
    3. 4.3. Gas Imports
    4. 4.4. Gas Exports
  5. 5. Gas Infrastructure
    1. 5.1. Gas Grid
    2. 5.2. LNG
    3. 5.3. Storage
  6. 6. Gas Market Regulation
    1. 6.1. Upstream
    2. 6.2. Networks
    3. 6.3. Downstream

1. Introduction

The Netherlands are situated in the northwestern part of Europe and are bordered to the north and west by the North Sea; to the east by Germany and to the south by Belgium. The Netherlands have a total surface of 41,543 square kilometers (16,039 sq mi) and is inhabited by approximately 16.85 million people (January 2012 est). The Netherlands is a geographically low-lying country. About 25% of its area and 21% of its population are located below sea level and 50% of its land lays less than one meter above sea level. The country was a founding member of NATO, OECD, WTO and the EU, and participated in the introduction of the euro in 1999. The Netherlands was one of the first parliamentary democracies. The Netherlands has a capitalist market-based economy, ranking 13th of 157 countries according to the Index of Economic Freedom. Together with Belgium and Luxembourg it forms the Benelux economic union The Netherlands is the 4th largest gas consumer in the EU after the United Kingdom, Germany and Italy. It has a natural gas supply per capita of 2.355 the second largest in the EU after Luxembourg. It holds the 2nd largest reserve of natural gas in EU and holds 0.64% of the world gas reserves. The Netherlands is the 2nd largest gas producer and gas exporter in Europe after Norway. [1], [2]  

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2. Key Statistics

Basic Gas Facts - Netherlands
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) 1950 1266 1236 1247 1211
Gas production (mcm) 77295 75968 83572 78712 88516
Gas consumption (mcm) 47875 46537 48527 48960 54864
Gas imports (mcm) 25175 26093 26459 25657 25749
imports pipeline (mcm) 25175 26093 26459 25657 25749
imports LNG (mcm) .. .. .. .. ..
import dependency (%)* 0% 0% 0% 0% 0%
Gas exports (mcm) 54660 55668 61718 55612 59532
Natural gas supply per capita (toe) 2.096 2.031 2.107 2.115 2.355
Technically recoverable shale gas resources (bcm) .. .. .. 481.44 ..
Coal Bed Methane reserves (bcm)** 32-118 .. .. .. ..
c = confidential; - = nill; ..= not available
* Imports dependency of natural gas = (imports - exports) / consumption
**Total recoverable resources. Source: F. van Bergen, et al. (2007)
Sources: Natural Gas Information © OECD/IEA, 2011, EIA Analysis & Projections, GMI/EPA Coal Mine Methane Country Profiles

[1], [2], [3]

Basic Energy Facts - Netherlands
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Energy Consumption (mtoe) 76.61 80.24 79.55 78.17 83.33
CO2 Emissions, energy-related (Mt) 240 182.2 177.86 176.11 ..
CO2 intensity, energy-related (tCO2/toe) 2.98 2.27 2.23 2.25 ..
Energy consumption per capita (toe/cap) 6.325 6.348 6.264 .. ..
CO2 per capita, energy-related (tCO2/cap) 14.669 11.13 10.82 10.66 ..
c = confidential; - = nill; ..= not available
Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics

[1], [4], [5]

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3. Gas Demand

This section explores total primary energy consumption and gas demand by sector for the Netherlands.

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3.1. Total Primary Energy Consumption per fuel

In 2010, Holland’s total TPEC amounted to 83.33 mtoe, a 6.6% increase compared to 2009. Oil accounted for 31.16 mtoe while coal and gas accounted for 7.93 mtoe and respectively 39.20 mtoe. Other sectors accounted for 5.04 mtoe. [1] With a 47% of TPES, gas has a very high penetration in the Netherlands, amongst the highest in Europe.

*other: nuclear, hydro, geothermal, solar, biofuels & waste, electricity and heat

[1]

*other: nuclear, hydro, geothermal, solar, combustible and renewable waste

[1]

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3.2. Gas demand per sector

In 2010 The Netherlands consumed a total of 54,864 mcm of natural gas 12.1% more that in the previous year. In 2009, the Netherlands consumed a total of 48,960 mcm of natural gas, this time 0.9% more than in 2008. Of this, 17,562 mcm were used for transformation, 2,041 – for energy industry own use, while 6,671 mcm and 19,924 mcm were consumed by industry and other sectors respectively. [1] Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works.[1]  

*other: commerce and public, residential, agriculture (incl. fishing), non-specified

[1]

*other: commerce and public, residential, agriculture, non-specified

[1]

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4. Gas Supply

This section deals with gas reserves, exploration & production, gas imports and gas exports.

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4.1. Gas reserves

 The Netherlands hold the second largest conventional gas reserve in Europe after Norway. It hosts approximately 0.64% of the world total reserves. The reserves-to-production ratio* for the Netherlands in 2010 was 13.7 years (estimate), about the EU’s average RP ratio of 14.0 years. [1], [2]

*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.  

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4.2. Exploration and production

In 2010 the Netherlands produced 88.516 mcm of natural gas, the second highest production in Europe after Norway, and accounted for 2.7% of the world natural gas production. [1]

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4.3. Gas Imports

Imports by country - Netherlands
By country of origin (in mcm) 2006 2007 2008 2009 2010e %Total
Denmark .. 2848 2682 2053 940 3.65%
Germany .. 1477 1032 725 808 3.14%
Norway .. 14384 13256 13423 12889 50.06%
UK .. 2637 4328 5829 7073 27.47%
Russia .. 4747 5161 3627 4039 15.69%
Other .. - - - - -
Total 25175 26093 26459 25657 25749 100%
%Total Consumption 52.58% 56.07% 54.52% 52.40% 46.93% -
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

Imports by transport type - Netherlands
By transport type (in mcm) 2006 2007 2008 2009 2010e %Total
Pipeline imports 25175 26093 26459 25657 25749 100%
LNG imports - - - - - -
Total 25175 26093 26459 25657 25749 100%
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

In 2010, gas imports represented 46.9% of the total volumes of consumed gas, the transit volumes being a significant part of this. All of Holland’s gas imports are being accomplished via pipeline; so far there are no significant LNG imports. Most of the gas pipeline imports originate mainly from Norway and Russia. The share of Norway in Holland’s gas imports in 2010 contracted to 50.1%, compared to 52.3% in 2009, while the share of Russian gas in Holland’s imports increased, reaching 3.14% (almost 11.4% increase compared to 2009). [1]  

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4.4. Gas Exports

Exports by country - Netherlands
By country of destination (in mcm) 2006 2007 2008 2009 2010e %Total
Belgium .. 7490 10965 6968 10555 17.7%
France .. 8334 7899 7914 7604 12.8%
Germany .. 22333 23228 25114 22310 37.5%
Italy .. 8228 9250 6646 8954 15.0%
Switzerland .. 633 624 528 600 1.0%
UK .. 8650 9752 8442 9509 16.0%
Other - - - - - -
Total .. 55668 61718 55612 59532 100%
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

In 2009, the Netherlands exported a total of 59,532 mcm of natural gas, almost 7% more than the previous year. The Netherlands is the second larger natural gas exporter in Europe after Norway. Approximately 37.5% of the exported volumes went in 2010 to Germany, while most of the rest gas exports went to Belgium (17.7%), the UK (16%) and Italy (15%). [1]

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5. Gas Infrastructure

This section deals with the gas grid, LNG terminals and storage facilities.

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5.1. Gas Grid

Pipelines

Gasunie is the first independent natural gas transport provider with a cross-border network in Europe. The company offers transport services in the Netherlands through its subsidiary Gas Transport Services B.V. (GTS and in Germany via Gasunie Deutschland in Germany). The Dutch TSO operates a grid of around 11.500 km (6000km have a pressure of <40 bar). There are over 600 physical TS-DS connections in the Netherlands and one virtual gas trading point - Title Transfer Facility (TTF). In 2009, 967,175 GWh of energy (in natural gas) was transported by Gasunie, which is about 1,5 times the volume consumed in the country. The Dutch regulator NMa (division Energy Chamber) approves the tariffs and conditions for gas transmission.  [1]  

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5.2. LNG

At the end of 2010 there were no operational LNG terminals in The Netherlands, except Gasunie’s LNG peak shaver. Nevertheless the construction of a 12 bcm regasification terminal GATE, in Rotterdam, was almost complete. It become operational in 2011. [1]

LNG - Netherlands
Site Storage - Regasification - Owner Operator TPA Start-up Status
- #Tanks Storage cap* Max hourly cap** Nom.cap*** - - - - -
Gate terminal 3 540 1.65 12 Gasunie / Vopak Gasunie / Vopak .. 2011 E
c = confidential; - = nill; ..= not available
E = existing; U = under construction; P = proposed
* LNG storage capacity in m3 x1000 in LNG
**max. hourly capacity in bcm (N)/hour.

***nominal annual capacity in bm3(N)/y.
Source: Gas Infrastructure Europe: LNG 2011

[1]

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5.3. Storage

In August2011 there were 5 operational storage facilities in the Netherlands with a combined technical storage capacity of 5,258 mcm. There are 3 depleted gas fields, 1 salt cavern and 1 LNG peak shaver with an aggregated 215.4 mcm/day withdraw capacity and a 59.05 mcm/day injection capacity. [1] In addition to the existing storage capacity, one storage facility with a technical storage capacity of 4100 mcm is currently under construction.

Storage existing - Netherlands
Nr. Facility name Operator Storage Capacity (mcm) Withdraw (mcm/day) Injection (mcm/day) TPA* Type Status
1 Grijpskerk NAM 1500 55 12 - Gas Field E
2 Norg (Langelo) NAM 3000 55 24 - Gas Field E
3 Maasvlakte Gasunie 78 31 0.25 - LNG Peak Shaving E
4 Alkmaar TAQA Energy BV 500 36 3.6 - Depleted Gas Field E
5 Zuidwending Gasunie 180 38.4 19.2 - Salt cavern E
6 Bergermeer TAQA Energy BV 4100 57 42 .. Gas field U
Total - - 5258 215.4 59.05 - - -
TPA: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
E = existing; U = under construction; P = proposed
"Source: GIE 2011
"

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6. Gas Market Regulation

This section deals with the gas market regulation in upstream, the transmission grid and downstream.

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6.1. Upstream

In the Netherlands, the production sector of the natural gas industry is private while the wholesale segment is partly private and partly publicly owned. Nederlandse Aardolie Maatschappij B.V. (NAM) who is 50% owned by Shell and 50% by Esso (ExxonMobil group) is the dominant player in the natural gas production business. It is both the holder and operator of the Groningen concession (the Slochteren field). The Slochteren field (Groningen-field) is one of the largest gas field in Europe and about 60% of the total field’s reserves already have been produced. For this reason, it is mainly used for balancing purposes and accounts for 50% of natural gas production in the Netherlands. The other 50% at a high load factor are supplied by around 300 smaller gas fields located mostly offshore in the North Sea. Groningen gas field contains low-calorific gas, therefore the Dutch gas market is mainly dominated by low-calorific gas (or so-called G-gas). The company GasTerra (owned by the Dutch state (50%), Shell (25%) and Esso (25%)) acts as single buyer for all NAM fields, selling the gas to downstream companies. The high-calorific gas in the Netherlands is mostly imported by several parties and traded on a virtual TTF-hub. [1], [2]  

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6.2. Networks

The Dutch network sector is mostly under public ownership. Since July 2005, Gas Transport Services B.V. (GTS) has been the operator of the national transmission system. GTS is a 100% subsidiary of N.V. Nederlandse Gasunie. N.V. Nederlandse Gasunie retains legal and economic ownership of the transmission grid.  In 2008 there were 16 registered regional network operators on the Dutch market (mostly publicly owned, some 51% publicly owned and 49% private). The network and trading activities are legally unbundled with tariffs being regulated by the Dutch regulator (DTe).[1]  

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6.3. Downstream

 The Dutch downstream gas market is fully liberalized since 2004. There are around 20 parties, both private and state owned, active on the market, with Essent and Nuon being the most important players. [1]

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