In a turbulent world, the government and industry want to get the last gas from the North Sea

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  Rob Koster

  Reporter Economy

There is still about 100 billion cubic meters of natural gas to be won under the Dutch part of the North Sea, just more than the total amount of gas that the Netherlands uses in three years. But despite the scarcity of gas on the world market, there has been little enthusiasm in oil and gas companies in recent years to bring out that gas.

For various reasons, those companies are wary: permits take a lot of time, the costs are high and the risks are high. Agreements between the government and gas operators must change that. Next month an agreement is expected.

One of the few new gas extraction projects that have been developed in recent years can be found above the Wadden Islands Schiermonnikoog and Borkum on the North Sea. The Dutch company One-Dyas, about 20 kilometers above the islands, has just started the extraction of gas under the Dutch and German part of the North Sea.

Compared to the Groningen field, projects at sea fall under the so-called small fields, but NO5-A is relatively large. According to director Chris de Ruyter van Steveninck, that is also the reason why this field is profitable. The Netherlands consumes 30 billion cubic meters of gas annually. In the coming years, De Ruyter thinks they can deliver 15 percent of that gas demand in the Netherlands and argues for expansion.

“It has an economic interest for the Netherlands,” says De Ruyter van Steveninck. “It contributes to security of supply. And not in the least place, producing local gas has the least negative environmental impact and is therefore also good for the climate objectives of the Netherlands.” He is referring to the negative effects such as methane leakage of, among others, American shale gas that is converted into liquid gas (LNG) for exports.

At present, 62 percent of the gas that we use in the Netherlands is imported from abroad, of which 27 percent from the US and 14 percent from Norway. Now that not only Russia but also the United States have become a less reliable partner, the unrest about the security of security of gas is growing.

When the gas price broke all records after the Russia raid in Ukraine, gas use in the Netherlands fell from 40 to 30 billion cubic meters per year. Since then, gas consumption has not fallen further. The full energy network inhibits the transition from gas to electricity. Alternatives for the heating of homes, such as geothermal heat, are going slowly.

“The current predictions are that we still need gas until 2045,” says Nicolien Vrisou van Eck, Director of Gas at Energy Management Nederland (EBN). After closing the Groningen field, where there is probably about 500 billion cubic meters under the ground, the North Sea is our largest reserve with 100 billion cubic meters.

EBN participates on behalf of the government in all oil and gas extraction projects on land and at sea. So far, the government has a 40 percent share in gas extraction. New regulations make it possible to increase that percentage where necessary to 85 percent. It shows the importance that the government attaches to increasing gas yield from the North Sea.

But in recent years the amount of gas extracted from the North Sea has decreased rapidly. Gas fields are closed everywhere and platforms are removed, drilling to new fields are sparing. It takes longer in the Netherlands to get a permit than, for example, in the United Kingdom or Norway. The risks to invest are therefore too great for many companies.

An agreement between Minister Hermans of Climate and Green Growth, EBN and the umbrella organization of oil and gas companies must change this. It should lead to more predictable permit procedures, less financial risks and better cooperation between companies. This cooperation must lead to a reduction in costs and more efficient use of the pipelines with which the gas is brought ashore.

Greenpeace has regularly campaigned at the drill location and also the mayors of Schiermonnikoog and the German Borkum oppose gas extraction. The delivery of NO5-A was stopped for months due to lawsuits, filed by environmental organizations. The last word of the judge about the project has yet to be pronounced.