Netherlands Faces Gas Shortage as Reserves Hit 35 Percent Capacity

Netherlands faces a severe energy squeeze as winter approaches, with domestic gas reserves languishing far below historical levels and international market volatility threatening households and businesses. That figure marks a steep drop from previous years, when late-June storage reached seventy-eight percent in 2023 and sixty-eight percent in 2024. With only 49 days remaining until Prinsjesdag and the 2027 budget, the question of whether the funds reserved for this process are sufficient will become clearer.

The Groningen Closure and the Gasterra Sell-Off

The structural vulnerability stems from a combination of irreversible political choices and corporate wind-downs. The state-affiliated gas trading company Gasterra—jointly owned by Shell, Exxon, the Dutch State, and state energy company EBN—has ceased operations entirely because no more natural gas is being pumped from the ground. Rather than retaining reserves for domestic security, the company sold off its entire inventory. When preparations for the winter heating season began on April 1, domestic gas storage facilities were at a mere 4.5 percent capacity, with two major facilities sitting completely empty. These two empty facilities were the domain of Gasterra.

The current crisis follows a five-year period of high natural gas prices, a trend that began in 2021 when the Russian state energy company Gazprom failed to fill its reserved storage in the Netherlands, an event viewed in hindsight as a precursor to Putin’s invasion of Ukraine. Successive cabinets, including those of Rutte IV and Schoof, pursued policies aimed at phasing out fossil fuels while relying on the assumption that commercial traders would naturally fill storage tanks during summer months when prices dip. This “price stimulus” mantra assumed commercial parties would deliver to citizens and businesses.

That market mechanism has faltered. International gas prices have climbed back to March levels, matching the initial spikes triggered by shelling in the Strait of Hormuz. Gashandelaren are deeply nervous as buyers across West Europe and the Far East scour global markets for scarce supplies. This instability is exacerbated by the irreversible closure of the Groningen wells and “zigzag” policy responses to price hikes caused by wars in Ukraine and the Gulf.

State Intervention and the Twenty-One Billion Euro Loan

Recognizing that commercial players will balk at purchasing gas amid skyrocketing costs, the government has abandoned its hands-off stance. Minister Stientje van Veldhoven (Klimaat en Groene Groei, D66) targets an 86 percent fill rate for gas storage facilities, excluding separate strategic reserves. For comparison, the peak last year was nearly 74 percent. To achieve this target, the state-owned energy company EBN has launched permanent purchasing operations. To finance the massive undertaking, the government is lending EBN 21,6 miljard euro, capital that must eventually be recouped by selling the stored gas back to the market during the winter.

This emergency intervention underscores a broader, uncomfortable dependency. Official figures from the statistics bureau CBS show that Dutch foreign energy dependency climbed from 70 percent in 2015 to 77 percent last year. The nation relies increasingly on imports, particularly liquefied natural gas and oil from the United States, leaving domestic energy security hostage to global trade flows. This dependency contradicts the goals of the cabinet-Jetten, which intends to accelerate the energy transition to reduce reliance on foreign sources.