AMSTERDAM—The Netherlands will continue to be a key supplier of gas to the European Union (EU) in coming years but it must act fast in order to do so, delegates at the Offshore Energy Conference in Amsterdam were told Oct. 13.
With 883 billion cubic meters (Bcm) of natural gas resources, the Netherlands is the largest natural gas producer in the EU. It also is home to the world’s 10th largest gas field—Groningnen—which contains 671 Bcm and provides most of the country’s energy. E&P activity continues to be strong as some 53 wells were drilled in 2014, of which 18 were exploration wells.
The International Energy Agency predicts European gas demand will increase from 410 Bcm in 2014 to 445 Bcm in 2020, although not as high as the 529 Bcm reached in 2010. But the Netherlands is well placed to continue supplying some of this demand, said Lucia van Guens, senior consultant of petroleum geoservices at TNO, the Netherlands organization for applied scientific research.
The country has made sustained use of its natural gas resources over the years and its Small Fields policy, which guarantees a buyer for gas produced from small fields, has been very successful, she added.
“There is still remaining exploration potential, although not that much. Time is running out and we have to go for the reserves very fast because of the aging infrastructure,” Van Guens said. “We have hundreds of other additional small fields which are also producing gas.”
Export potential also exists. The Netherlands is used as a gas and LNG import trade hub for supplies from Russia and Norway.
“At the moment we are producing around 66 Bcm a year and national consumption is around 40 Bcm,” she added, “so obviously there is room for export, mainly to Belgium, Germany and Italy and a little bit to France and the U.K.”
However, the Dutch E&P sector is not without challenges. In addition to aging infrastructure, challenges also include the economic viability of small offshore fields and a lack of qualified people to operate the assets, Van Guens said.
Income for the Dutch state also has plummeted since 2014-2015 due to a drop in production from Groningen, adding more impetus to the fight to keep production levels high.
Getting and maintaining public trust was also among the challenges cited.
Van Guens said it took Shell’s Dutch arm, Nederlandse Aardolie Maatschappij, 50 years to build trust in some European communities.
“Operating these days is different than it was in the last decade. Public acceptance is extremely important in this day and age,” Van Guens added. “We need to be a force for good in the communities where operations take place.
“The Groningen Field is an uncertain territory as far as social license to operate is concerned,” she said.
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