The cabinet, Energy Management Netherlands (EBN), and industry association Element NL have reached a joint agreement to responsibly extract the remaining (potential) natural gas in the North Sea. Minister Sophie Hermans of Climate and Green Growth signed the Sector Agreement on Gas Extraction in the Energy Transition on Wednesday, overlooking the North Sea. This agreement aims for more efficient gas extraction from gas fields in the North Sea. Although we are consuming less gas, the gas from the North Sea is still needed for our energy supply for the time being. This makes the Netherlands less dependent on other countries and has less impact on the climate than imported gas.

Minister Sophie Hermans: “In a world that is becoming increasingly unstable, it is important that we take responsibility for our energy supply. This agreement helps us move forward: with less foreign dependence, less emissions, and a focus on the future. We utilize what is still available, with consideration for the climate and future generations.”

There is hard work being done towards a future-proof and clean energy system. “However, gas will still be needed for the transition to a climate-neutral energy system. For years, the Netherlands has imported more gas than it produces. A large part of this comes from far away, leading to extra emissions during extraction, transport, and processing. Therefore, the cabinet wants to extract the necessary gas as much as possible from domestic sources, as it makes us less dependent and is better for the climate,” said Minister Hermans.

“This is also evident in the infographic Energy in Figures that EBN produces annually,” says Jan-Willem van Hoogstraten, CEO of Energy Management Netherlands. “American LNG results in much more CO₂ emissions than Dutch natural gas. Moreover, there are still at least 100 billion cubic meters of natural gas under the Dutch North Sea. This natural gas can significantly contribute to our energy independence, affordability, and is therefore not only better for the environment but also for the economy.”

To safely and efficiently extract this gas, it has been agreed that companies in the sector will collaborate more closely. There will be one joint approach per region in the North Sea, allowing projects to be planned and executed more intelligently. It will also become more attractive and easier for companies to invest in the development of new gas extraction projects.

The agreement includes the following concrete commitments:

More Efficient Collaboration

• The government and sector will work more closely together to reduce costs and risks.
• A joint planning (regional programming) of projects at sea will be established.

Faster and More Transparent Permitting Process

• Permitting procedures will be faster but, above all, clearer and more predictable, without compromising on diligence.
• The Ministry of Climate and Green Growth will be informed early about new projects. For complex applications, a preliminary consultation will take place first. This way, we strive for quick decision-making within legal frameworks and reasonable timelines.

Increase Exploration Activities

• Additional exploration activities are needed to improve gas production.
• The cabinet is investigating how financial risks can be minimized. EBN can take a larger share in exploration projects in exceptional cases to reduce the risk for companies.
• When a company decides not to develop an area, others can take it over. This way, the potential gas remains accessible.

“The industry can help the Netherlands with safe and responsible gas production. This is good for energy independence, affordability, and the climate. This agreement is the starting signal for an intensive collaboration to improve predictability and stability. It is now up to the government, EBN, and the gas sector to take the first steps in practice together,” said Gerda Verburg, chair of the industry association Element NL.

This agreement mainly focuses on scaling up gas extraction in the North Sea. For gas extraction on land, the agreements are currently being developed. These will provide clarity on a responsible reduction of gas extraction on land and the conditions under which gas extraction can still take place.