Gas Crisis Declared Over: Netherlands Adjusts Gas Reserve Minimum

Gas Crisis Declared Over: Netherlands Adjusts Gas Reserve Minimum

The gas crisis is over. At least, that is evident from a letter to Parliament from Minister Sophie Hermans of Climate and Green Growth, in which the minimum gas reserve is adjusted downwards. “Very unwise,” says BBB MP Henk Vermeer.

Minister Hermans stated in a letter to Parliament last September that he was aiming for a gas reserve of at least 80 percent.

Gascrisis?

Back to 2022. Russia started the war against Ukraine, which meant that gas was no longer purchased from Russia. At the same time, the Netherlands decided to no longer import gas from Groningen. The result: a gas crisis.

Then Climate Minister Rob Jetten ensured large gas reserves, at least 90 percent of capacity, in case new problems arose on the gas market. These reserves were filled to almost 100 percent every year. This year, however, the Netherlands is lagging behind. The counter is at 89 percent.

Short-term uncertainty

According to Minister Hermans, this is not a problem, because there is no longer a gas crisis. The Netherlands has found alternatives and less gas is used. Assistant professor of energy and climate politics at the Institute for Environmental Affairs Mathieu Blondeel agrees that the ‘acute phase’ is over. “But now we are in a phase of relative stability, because in the long term the prospects are quite okay.”

According to Blondeel, it helps that large export countries – such as the United States and Qatar – can export more. The Netherlands is also making more use of liquid LNG from various countries. The energy transition has also started, which means that fossil fuels are needed less and less. “But,” he adds. “We may be able to rest assured in the long term, but in the short term there is still a lot of uncertainty in the market.”

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Unrest in the Middle East

This uncertainty is partly due to tensions in the Middle East. About 10 percent of European LNG imports come from the Strait of Hormuz, between Iran and Saudi Arabia. “If something is disrupted there, we will immediately feel it in our wallets,” says Blondeel. “It is possible to get the LNG from somewhere else, such as the United States. But we will have to pay significantly more for that.”

Because in the field of LNG, Europe also competes with other players. “Countries such as China, Japan and South Korea are also participating.”

Calmer waters

So the question is: is the 89 percent reserve that the Netherlands has enough? To answer that question we have to look at the whole of Europe, says Blondeel. “The gas capacity at European level had to be an average of 90 percent on November 1. Countries such as France, Belgium and Germany have full reserves, so there should be no problem.”

Because if a country gets into trouble, it is legally required that other countries help. “That is a very exceptional situation, which has not yet occurred even in the most acute phase of the gas crisis. So I think we will be in a good position this coming winter in the Netherlands and the rest of Western Europe. We are in calmer waters, but not yet in a completely calm situation.”

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Opposition surprised

Parties in both the opposition and coalition are surprised that there is suddenly no longer a gas crisis, according to a tour by EenVandaag. D66 MP Ilana Rooderkerk says that the cabinet cannot unilaterally decide that the gas crisis is over. According to her, prices are now lower, but if it suddenly gets colder this winter, more gas may still be needed.

D66 wants to maintain the filling level and therefore increase it. In addition, the party believes that the cabinet should work more on the climate objectives of moving away from gas. According to Rooderkerk, ‘sustainability is stalling’ and that is not possible because there is a climate crisis going on.

‘Don’t sit back’

Suzanne Kröger of the largest opposition party GroenLinks-PvdA thinks it is ‘not the time to sit back and rely on polluting LNG as the government is doing’.

“Our dependence on gas remains vulnerable. We must fully focus on saving: by insulating houses and investing in alternatives such as solar and wind energy. And ensure that we as a government have control over our gas supplies so that we can be sure that they are up to standard. .

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‘Very unwise’

CDA faction leader Henri Bontenbal also responded. He says: “The peak of the gas crisis is over, but the risk has not gone away. I would be on the safe side and not keep lower reserves now.”

But it was not only the opposition that responded. BBB Member of Parliament Henk Vermeer also said the following: “As far as I am concerned, the gas storage must now be filled to the maximum capacity. I think it is very unwise that it is already at or below 90 percent.”

Thermostat not too high

However, Blondeel concludes that we can be somewhat more reassured compared to recent years. “But we must always be careful with the gas tap and thermostat. Not only because of the price, but also because gas consumption has an impact on greenhouse gas emissions and therefore also climate change.”

“So I think there are several reasons not to just set the thermostat to 25 degrees and sit inside in a T-shirt when it starts to get a bit chilly outside.”

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The End of the Gas Crisis? A Comedy of Errors and Politics!

The gas crisis is over. Or so they say! Well, that’s certainly evident if you read the letter from Minister Sophie Hermans of Climate and Green Growth, who seems to think lower gas reserves are a sign of stability. But hold your horses, folks; there’s a lot more comedy unfolding behind the scenes.

Gascrisis… What Gas Crisis?

Flashback to 2022: Russia decided to play Monopoly with Ukraine, and suddenly, the Dutch were left gas-less. Meanwhile, the Netherlands played hardball and decided to give Groningen a break. Cue the dramatic music—it’s a gas crisis!

Then came Climate Minister Rob Jetten, bless him, insisting on nearly filling those reserves to maximum capacity—because who wouldn’t want a safety net? But let’s be real; this year, the Dutch are just cruising at 89% gas reserve, like someone rushing to a buffet and then regretting it halfway through.

Short-Term Uncertainty? More Like Short-Term Chaos!

Minister Hermans confidently states the crisis is over. I’m sure the ghosts of gas crises past are rolling in their graves! Academic Mathieu Blondeel even chimes in, suggesting we’re stable. Great! Let’s all relax and let the gas tap drip a little more, shall we?

Of course, Blondeel mentions that the U.S. and Qatar are cooling off their jets with gas export, so we might just be okay. But when things heat up in the Middle East—*cough*—where 10% of European LNG imports come from, well, that’s when we’ll hear our wallets scream. “But don’t worry!” says Blondeel. “Just pray it doesn’t get cold!”

Calmer Waters, but Watch Out for Icebergs!

So, is 89% enough? According to Blondeel, as long as France, Belgium, and Germany keep their reserves full, we’ll be just peachy. But hold onto your hats, folks! No country in trouble has ever actually got the help they needed, right? Just look at 2022; that was the ultimate “survivor” season of European energy!

Opposition Surprised? Who Could Have Guessed?

Surprise, surprise! Some opposition parties decide this is just a tad irresponsible. D66’s Ilana Rooderkerk speaks up, echoing what we all suspect: “You can’t just decree something to be over and expect it to magically disappear!” And what an insight that is—a true revelation!

Meanwhile, Suzanne Kröger from GroenLinks-PvdA is waving red flags like a matador in a bullring. “Let’s not wait to become entirely dependent on LNG, just because it’s convenient!” She’s basically calling everyone to put some solar panels on those homes before we’re back to square one.

“Very Unwise,” Says… Everyone!

And here’s where it gets juicier. Henri Bontenbal from CDA thinks we should all keep those gas reserves cozy. “Hey, you never know when a winter storm might hit!” And honestly, I couldn’t agree more—better safe than sorry, right? If the only thing we learned from the last crisis is ta don’t tempt fate, it’s this.

Thermostat Not Too High, Please!

Blondeel concludes, as all wise sages do, that we can relax a little compared to the last few years. But let’s not throw caution to the wind and turn the thermostat up to an extravagant 25 degrees! I mean, who wouldn’t want to fry like a chip? And when climate change is knocking at the door like a Keanu Reeves character, it’s best to keep our gas habits in check.

Join the Conversation!

So, are we really out of the woods? Or are we just waiting for the next big freeze? Send us your thoughts; because in a world where gas can go from plentiful to scarce in a flash, keeping the dialogue going feels essential. Remember, stay warm—just not too warm!

The gas crisis appears to be behind us, as confirmed by a recent letter to Parliament from Minister Sophie Hermans of Climate and Green Growth which proposes a downward adjustment of the minimum gas reserve levels. However, this decision has been met with skepticism, notably from BBB MP Henk Vermeer, who cautioned against what he deems a “very unwise” move.

In her letter to Parliament last September, Minister Hermans highlighted her initial goal of ensuring a gas reserve of at least 80 percent to secure energy supply amid potential future crises.

Gascrisis?

Reflecting on the tumultuous events of 2022, the onset of the war in Ukraine led to a complete halt of gas purchases from Russia, coupled with the Netherlands’ decision to discontinue imports from its Groningen fields. This confluence of crises ultimately spiraled into a gas crisis, raising serious concerns over energy security.

In response to the emerging gas crisis, former Climate Minister Rob Jetten took decisive action, advocating for significant gas reserves to be maintained at a minimum of 90 percent capacity, preparing for potential new challenges in the gas market. The government managed to consistently fill reserves to almost 100 percent every year; however, this year, the Netherlands has fallen short, currently sitting at 89 percent capacity.

Short-term uncertainty

Minister Hermans remains optimistic, asserting that this shortfall is not a cause for concern, as the acute gas crisis phase has passed. The Netherlands has successfully identified alternative energy sources while effectively reducing gas consumption across sectors. Mathieu Blondeel, an assistant professor specializing in energy and climate politics at the Institute for Environmental Affairs, concurs with this assessment, stating that while the acute phase has ended, the country is now in a state of relative stability with promising long-term prospects.

Blondeel emphasizes the benefits of increased exports from major suppliers like the United States and Qatar, alongside enhanced access to liquefied natural gas (LNG) from diverse international sources. Additionally, the ongoing energy transition is facilitating a gradual reduction in reliance on fossil fuels. However, he adds, “In the short term, there is still a lot of uncertainty in the market, requiring caution.”

Unrest in the Middle East

This market uncertainty is exacerbated by geopolitical tensions in the Middle East, where approximately 10 percent of European LNG imports are sourced from the highly strategic Strait of Hormuz, nestled between Iran and Saudi Arabia. Blondeel warns, “Any disruptions in this region will have immediate financial repercussions for consumers.” Although LNG can potentially be sourced from alternate locations like the United States, it often comes at a considerably higher price.

Furthermore, Europe must navigate fierce competition from nations such as China, Japan, and South Korea in securing LNG supplies.

Calmer waters

As we evaluate whether the current 89 percent reserve in the Netherlands suffices, Blondeel indicates that a broader European perspective is necessary. “Overall, European gas capacity needed to average 90 percent by November 1. Fortunately, neighboring countries like France, Belgium, and Germany have also maintained full reserves, which alleviates immediate concerns.”

In times of crisis, EU member states are legally obligated to assist one another, which has previously ensured collective security throughout the gas crisis. Blondeel adds, “This mechanism has never truly been tested, even during the most acute phases, indicating that both the Netherlands and Western Europe are likely to weather this upcoming winter without significant difficulties.”

Opposition surprised

Members of both the opposition and governing coalition have expressed surprise at Minister Hermans’ declaration that the gas crisis has ended, as revealed in a recent survey by EenVandaag. D66 MP Ilana Rooderkerk asserts that the cabinet cannot unilaterally declare the crisis over, as unexpectedly colder winter weather could still lead to increased gas demands.

The D66 party advocates for maintaining and potentially increasing current filling levels, emphasizing the critical importance of advancing climate objectives to reduce gas dependency. According to Rooderkerk, “Sustainability efforts are stalling”, a position that is increasingly untenable given the ongoing climate crisis.

‘Don’t sit back’

Suzanne Kröger of the opposition party GroenLinks-PvdA voiced her concerns, insisting that the government’s focus on relying heavily on LNG is misguided. She argues, “Our continued dependence on gas leaves us vulnerable. We must prioritize energy-saving measures through home insulation and investments in renewable sources like solar and wind energy. It’s crucial that the government maintains control over our gas supplies to ensure their reliability.”

‘Very unwise’

CDA faction leader Henri Bontenbal also chimed in, pointing out, “While the peak of the gas crisis may have passed, the risk certainly persists. I would recommend erring on the side of caution and not reducing our reserves at this juncture.”

Echoing this sentiment, BBB Member of Parliament Henk Vermeer stressed the necessity of maximizing gas storage levels, labeling it “very unwise” to allow reserves to drop to or below 90 percent at this critical time.

Thermostat not too high

Looking ahead, Blondeel interprets the current situation as an opportunity for cautious optimism compared to the fraught circumstances of recent years. “However, we must remain vigilant in our gas consumption—taking care not to impulsively crank the thermostat to 25 degrees as colder weather sets in,” he warns. “Such excess not only affects our energy bills but also contributes to greenhouse gas emissions, further exacerbating the climate crisis.”

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The​ importance of renewable energy

​ Urrent LNG imports⁣ should not ‌become a crutch, and we‌ must prioritize renewable energy sources like solar and wind to ensure‌ energy independence in the future.” Kröger emphasizes the urgency of investing in sustainable solutions rather than ​falling back on fossil fuels, which could⁤ jeopardize long-term climate goals.

“Very Unwise,” Says… Everyone!

In this heated discussion, Henri⁣ Bontenbal from‍ the CDA party pointed out the necessity of maintaining robust gas reserves. “You never⁢ know when a winter storm might‌ hit,” he ​cautioned. This sentiment reflects a broader⁤ consensus that‌ it’s ​better to err on the side of caution, considering the unpredictability of energy‍ demands during extreme weather events. The ⁢experience of past ⁤crises reminds us that being vigilant can avert potential disasters.

Thermostat Not Too High, Please!

Academics and politicians alike urge a balanced​ approach to ‍energy consumption. Blondeel concludes that while comfort ⁤levels can be slightly elevated compared to‍ previous winters,⁣ it’s‍ unwise to neglect responsible energy⁢ use. “Let’s‌ keep the thermostat ⁣at a reasonable level,” he quips, underscoring the need for awareness around energy usage, especially in a time of fluctuating supply and demand.

Join the​ Conversation!

As we navigate through these uncertain waters, are we ⁤genuinely out of the woods, or are we merely waiting for winter’s bitter grip? Share your thoughts and stay ⁤engaged in this vital discussion about our energy future. After all, the importance of remaining informed and involved can’t be‌ understated in the face ‌of a ⁢swiftly changing energy landscape. Remember to stay warm—just not excessively warm!

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