Cabinet wants to get rid of Russian gas and oil before the end of the year

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Cabinet wants to get rid of Russian gas and oil,

The government wants the Netherlands to be independent of Russian gas, oil and coal by the end of this year. This is reported by Minister Rob Jetten (Climate and Energy) on Friday. To achieve this, the government is focusing on energy savings, sustainability and more energy imports from other countries.

“We no longer want to fill Putin’s coffers,” Jetten said. He acknowledged that it will be a major task to reduce the dependence on Russia in nine months.

The share of Russian gas can be completely saved and replaced before the end of the year, jetten thinks. The minister cannot rule out that Russian gas will still flow to other countries via Dutch pipelines after 2022.

The Netherlands currently imports 6 billion cubic metres of gas per year. That is about 15 percent of the total annual gas consumption. Cabinet wants to get rid of Russian gas and oil.

Due to the expansion of so-called LNG terminals for liquefied gas in Rotterdam and the construction of a floating LNG terminal in Eemshaven, the government wants to import about 8 billion cubic meters of extra liquefied gas from other countries before the end of the year.

For this, the Netherlands is dependent on the availability of liquefied gas on the world market. That is now very expensive and scarce.

Cabinet wants to get rid of Russian gas and oil before the end of the year

In the European Union, it has already been agreed to stop importing Russian coal by 11 August at the latest. In the coming weeks, the government also wants to try to make agreements with other countries to become independent of Russian oil as soon as possible.

Jetten has asked the European Commission to investigate how Europe can reduce the purchase of oil without jeopardizing the security of supply.

State to guarantee price risk filling of gas storages

To prevent the Netherlands from running out of energy next winter, sufficient gas must be stored, including in the gas storage near Bergen. This field has a storage capacity of 4 billion cubic meters.

The storage in Bergen is commercially run in contrast to the storages in Norg and Grijpskerk. Russia’s Gazprom rents about 40 percent of the storage, but did not use it last summer. As a result, the storage is far from filled.

Due to the high gas prices and the associated risks, it is currently not attractive for companies to fill the gas storage. Normally, the price of gas in the summer is lower than in the winter, so companies make money from filling in the warm months.

But at the moment, it is not certain that the price of gas will be as high or higher in winter, which may cause companies to incur losses.

The cabinet has therefore decided to entice companies to fill the surcharges. The State will guarantee the price risks they run.

The state-owned company Energie Beheer Nederland (EBN) must also fill the storage to 70 percent of the capacity, unless commercial companies do this themselves.

The cost for the government is estimated at more than 600 million euros. These costs will be recovered from gas users who benefit from filling storage facilities by means of an additional levy.

Cabinet wants to get rid of Russian gas and oil before the end of the year

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