Dutch Government Activates ‘Early Warning’ Because of Russian Cutbacks on Gas
The Dutch government said Monday that tightening Russia’s gas supply to Europe urged it to declare an “early warning” stage of the natural gas crisis. This is a move that allows more electricity to be generated by burning coal.
Recent Russian actions — primarily a reduction of about 60% in flow from the Nord Stream 1 pipeline to Germany — have significantly darkened the mood for energy in Europe. European governments and industry are now convinced that Moscow plans to use gas as the largest political weapon against the European economy in the coming months. This means that not only a handful like Bulgaria and Poland, but also major European countries are likely to completely reduce or reduce their gas supply and need to take steps to reduce their vulnerabilities. increase.
According to analysts and government officials, gas flows have already been reduced not only in Germany, but also in other countries, including Italy and France. The Dutch government has said that the Netherlands has “no serious gas shortages” yet, but that a decline in supply “may have consequences.”
“We have found that the total gas supply from Russia to Europe is declining rapidly,” said Rob Jetten, Minister of Energy and Climate, in a statement. Mr Jetten said that without action, the Netherlands and Europe are generally not guaranteed to be able to fill gas storage facilities “enough for winter.”
Most European countries accumulate gas stock in the summer when demand is low, in preparation for the winter when gas consumption surges due to heating. Insufficient reserves can lead to higher prices and increase Europe’s vulnerability to Russia’s blackmail about energy.
The Dutch government said it was taking immediate steps to curb gas consumption. This includes lifting restrictions on coal-fired power plants by 2024. The government also said it would encourage residents and businesses to save gas, including giving large industrial users financial incentives to reduce consumption.
Over the weekend, the German government took similar steps with coal, saying Austria would allow the conversion of gas-fired power plants to coal.
The Dutch government resists several calls to increase production in the Groningen gas field, a major provider in the northern part of the country, where authorities will close due to an earthquake caused by fuel extraction. doing. The government seems to be trying to keep that option open in Froningen, which is run by a joint venture owned by Shell and ExxonMobil.
The government said in a statement that it had decided not to “definitely close the well this year” because of what is called “uncertain geopolitical development.”
