The Netherlands is edging towards a strategic position on the European gas market. While the country's own gas reserves are dwindling, the Dutch import and transit role is growing.

On Tuesday the Nord Stream gas pipeline will be inaugurated. Dutch Prime Minister Mark Rutte is one of the most prominent guests at the ceremony in the northern German town of Lubmin. His presence is logical, because the Netherlands is a major player in the gas world. Most of the funding for the gas pipeline was supplied by Russia and Germany, but the share of Dutch state-owned Gas Union (Gasunie) is substantial, at 9 percent.

Producer becomes distributor
Owing to huge gas reserves in the northeast of the country the Netherlands was a major natural gas producer for many years. But no-one is denying that that the gas fields below the town of Slochteren in Groningen province are getting closer to being depleted. The decreasing output is compensated by a growth in sustainable "green" gas production, which went up from 16 million cubic metres in 2009 to 37 million in 2010.

In order to safeguard its position on the gas market, the Netherlands is striving for a strategic role as gas importer and distributor, with the aim of becoming northwest Europe's "gas hub". The new Nord Stream pipeline will pump billions of Russian gas into western Europe. A major part of that supply will be distributed via the Netherlands.

Liquid gas
In a related development a huge liquid natural gas (LNG) terminal was opened recently near the Dutch port of Rotterdam, to store LNG which is shipped in from Trinidad & Tobago, African countries such as Nigeria and Angola, and the Middle East.

From the Rotterdam terminal another 12 billion cubic metres of natural gas is flowing into the Dutch gas grid, being channelled to clients both in the Netherlands and abroad.

(rk)