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Increased gas production in the North Sea: necessary for the energy transition

“Since 2018 we are no longer self-sufficient in gas production, because we extract much less gas from Dutch soil,” says Marcel Hoenderdos, spokesman for Energie Beheer Nederland (EBN), which has the Dutch state as the sole shareholder. EBN participates in the extraction of natural gas and oil and cooperates with oil and gas companies for this purpose.

Now that the gas tap in Groningen is closing and we want to be less dependent on foreign countries, the government has recently started to accelerate the extraction of natural gas in the North Sea. On July 15, State Secretary for Mines Hans Vijlbrief sent a letter to the lower house in which he indicated that North Sea gas production should be increased.

Groningen

Since 1959, Groningen has been the natural gas cap on which Dutch production floats. The peak year for Groningen gas was 2015, when more than 50 billion cubic meters were pumped. By way of comparison: In the last few years we have used an average of 40 billion cubic meters in the Netherlands.

Last year, half of this was Dutch gas and the rest came mainly from Norway and Russia and as liquefied gas (LNG) from the United States and the Middle East. “Groningen accounted for 6.5 billion cubic meters of Dutch gas. 3.7 billion cubic meters came from small fields on land and the North Sea accounted for 8.9 billion cubic meters,” Hoenderdos calculates.

pilot light

This year only a few billion cubic meters will be extracted from Groningen soil and next year Groningen will be in pilot light. Added to this is the fact that production at sea and on land has not increased and it is clear. The Netherlands is largely dependent on foreign gas for gas and the war in Ukraine has made it clear that Dutch families are its victims.

In his letter to the House of Representatives in July, Secretary of State Vijlbrief gives a number of reasons for increasing gas production in the North Sea. First of all, the Netherlands must become less dependent on imports and also want to increase security of supply.

“Last, but certainly not least, extracting gas from our fields results in a significantly lower CO2 footprint,” says Hoenderdos.

New gas fields

More on how Dutch gas fields contribute to climate goals and the energy transition. First we go to oil and gas producer ONE-Dyas, which recently announced it will develop two fields in the North Sea, 20 kilometers above the Dutch and German Wadden Islands of Schiermonnikoog and Borkum, together with partners EBN and Hansa Hydrocarbons.

“The first field is due to deliver gas at the end of 2024 and if all goes according to plan, the second will start production in 2025,” says Chris de Ruyter van Steveninck, CEO of ONE-Dyas. The two fields can supply about 1.5 billion cubic meters of natural gas annually, and the entire surrounding North Sea area can supply up to 5 billion cubic meters of natural gas annually, enough for 12 to percent of national demand.

Footprint

“By extracting the gas close to home, the CO2 footprint is 30 to 50 percent smaller, especially when you compare it to imported LNG. It takes a lot of energy to get that gas to the end user. Imported LNG must first be cooled for transport and heated upon arrival before it is ready for use,” explains De Ruyter van Steveninck.

treasure

Own gas is also better financially than buying gas. After all, about 70 percent of the proceeds go directly and indirectly back to the state treasury when the property is sold. “Partly because EBN has a 40 percent stake in each field and partly because almost all the gas is sold locally. We never see a thing of every euro we pay abroad for gas”, says the administrator. delegate of ONE-Dyas.

Due to the proximity of an offshore wind farm, the ONE-Dyas gas fields will be connected to wind power via a cable.

Electric

“The extraction of the gas is done electrically, which reduces emissions to close to zero to go. As long as there is still demand for natural gas, it will play a major role in the energy transition. Furthermore, these fields and the existing offshore gas infrastructure may eventually be used for CO2 storage and hydrogen transportation, especially after 2045, when gas extraction will be stopped.”

Last Dutch gas

A TNO research commissioned by the Ministry of Economy and Climate in August showed that there are still 78.2 billion cubic meters of gas reserves in the North Sea. With this the total was adjusted upwards by 16.8 bcm, due to high gas prices.

“We advised the Cabinet to speed up offshore extraction to become less dependent on foreign gas,” says René Peters, researcher at TNO. “Especially with current gas prices, it is profitable to extract at sea and the CO2 emissions are lower than for imported gas.”

Gas requirement

Annual gas requirements will likely drop from 40 bcm to between 25 and 30 bcm in 2030. TNO and EBN share the expectation of ONE-Dyas’ De Ruyter van Steveninck that around 2045 the last gas will flow from a Dutch gas tap.

Peters: “The energy transition will then be practically complete and we will have an energy mix of wind from the sea, sun, biomass, nuclear energy and hydrogen”.

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