Phoenix 24
Market incentives, extreme heat and geopolitical disruption are weakening seasonal preparedness.
THE HAGUE, NETHERLANDS
The Netherlands is unlikely to meet its winter gas-storage target, according to state-owned infrastructure operator Gasunie. The company warned that current reserves may be insufficient if the country experiences one of its coldest winters in three decades, although missing the target does not automatically mean that households or businesses will face shortages.
Dutch storage facilities were 44.26 percent full on August 23, the lowest level among EU countries with available data. The government had aimed to reach approximately 80 percent by November 1, while its national security threshold of 115 terawatt-hours represents roughly half the country’s annual gas consumption. Gasunie now considers both the national target and the EU requirement of 74 percent unattainable.
The central problem is economic. Summer gas prices are currently higher than prices expected for winter, removing the usual incentive for energy companies to purchase fuel now, store it and sell it later. European gas traded near €64 per megawatt-hour on Wednesday, more than twice its level at the beginning of the year.
Geopolitical pressure has intensified the problem. Continued disruption in the Strait of Hormuz is delaying liquefied natural gas shipments from Qatar and raising uncertainty about supplies before the heating season. Reports of progress in Middle East negotiations briefly eased market concerns, but the route remains vulnerable.
Extreme summer heat has also reduced Europe’s ability to rebuild reserves. Record demand for air conditioning increased electricity consumption, while drought and high temperatures limited hydroelectric and nuclear generation. Utilities consequently burned more gas to produce power during the period when storage facilities would normally be replenished.
The Dutch government has authorised the state-owned company Energie Beheer Nederland to store up to 80 terawatt-hours when private operators fail to meet their targets. EBN obtained access to the Norg storage facility in April, but Gasunie says injections remain too slow despite the company performing its assigned role.
The Ministry of Climate and Green Growth maintains that it does not expect an actual shortage and says the government continues monitoring the situation. It will provide Parliament with an updated assessment and possible policy measures in September. The outcome will depend heavily on winter temperatures, global LNG availability and whether authorities intervene strongly enough to overcome a market structure that currently rewards waiting rather than preparation.
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