Netherlands pays for expensive gas storage, cabinet wants to share costs more fairly

The Dutch government is seeking to reform how gas storage costs are distributed to prevent domestic consumers from bearing the financial burden of storage facilities that benefit other European nations. Currently, the Netherlands maintains significant storage capacity to meet European mandates, yet this gas flows freely across interconnected European markets. This results in Dutch gas users paying for storage that subsidizes supplies for neighboring countries. To address this, the cabinet aims to shift responsibility by requiring energy suppliers to physically hold more of their own reserves and is pushing for new European regulations that would distribute storage costs more equitably among member states starting in 2028 or 2029.

Furthermore, the government is adjusting its approach because current mandatory storage targets have distorted market dynamics, making it less profitable for private companies to store gas. Additionally, the Netherlands has initiated a strategic gas reserve of five terawatt-hours for use during severe emergencies. Officials are investigating whether this strategic reserve should be expanded by 2028 to ensure greater national security during potential supply crises.