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Dutch agree deal to ramp up North Sea Natural Gas production

In a renewed push for energy security, the Dutch government has signed an agreement with oil and gas companies to significantly increase domestic gas extraction in the North Sea. The move aims to reduce the Netherlands’ reliance on imported gas, which currently accounts for a major share of the country’s energy supply.

The deal was officially signed in Scheveningen by Green Growth Minister Sophie Hermans, and targets the development of approximately 200 billion cubic metres of natural gas reserves, both offshore and in smaller onshore fields—resources that collectively represent around 25% of the country’s total gas potential.

Over the past two decades, offshore gas production in the Netherlands has declined sharply, falling from 39 billion cubic metres per year to just 8.8 billion cubic metres, following the government’s efforts to transition away from gas following the closure of the Groningen field. However, with around 90% of Dutch households still dependent on natural gas for heating, the government acknowledges that maintaining a steady domestic supply will be essential at least until 2045.

As part of the new strategy, state-owned energy company Energiebeheer Nederland (EBN) will expand its stake in national gas and oil production from 40% to up to 85%. However, production will be capped at 30 billion cubic metres annually—a volume sufficient to meet the Netherlands’ current domestic demand, 60% of which is currently met through imports.

Presently, the Netherlands imports 14% of its gas from Norway and 27% from the United States in the form of liquefied natural gas (LNG). The government’s updated energy policy aims to reduce dependence on Russian and Middle Eastern gas and scale back LNG imports from the U.S., citing concerns over higher methane content and emissions.

This policy shift marks a pragmatic response to ongoing energy needs while the country continues its broader transition towards a more sustainable, low-carbon future.

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