20120531-IEA-Oil_and_Gas_Emergency_Policy_The_Netherlands_2012_update_24页_1mb

The Netherlands: Energy Overview and Oil & Natural Gas Analysis

Core Content

The Netherlands has a significant role in the European energy sector, particularly in oil and natural gas supply and emergency preparedness. The country's energy mix in 2010 was dominated by oil (38%) and natural gas (47%), with both expected to decline in share over the next decade as total energy demand grows and renewable energy sources expand. The government aims to increase renewable energy to 14% of total energy consumption by 2020, while maintaining natural gas as a key back-up for intermittent renewables.

Key Oil Data

• Domestic Production: Declining, with an average of 31 kb/d in 2011, including 8 kb/d from non-conventional sources. Production from the Schoonebeek field was restarted in 2011 and is expected to contribute 14 kb/d over the next 25 years.
• Demand: Averaged just over 1 mb/d in 2011, with an import dependency of over 96%. The industry and transformation sectors are the main drivers of demand growth.
• Imports/Exports: The Netherlands is a net exporter of refined products, with significant crude and product imports from the North Sea, Russia, and OPEC countries. Net exports of gasoline and middle distillates are directed to North America and Western Europe.
• Refineries: Five major refineries operate in the Netherlands, with Shell and BP being the largest. Total refining capacity is around 1.25 mb/d.
• Storage Capacity: Estimated at 189 mb (30 mcm), with major storage areas in Rotterdam, Amsterdam, and Vlissingen. COVA (the Dutch stockholding agency) holds public stocks, covering 90 days of net imports, while industry holds 13.5 days of net imports.
• Import Dependency: Expected to remain high, with the country gradually moving towards full import dependence.

Key Natural Gas Data

• Production: In 2011, production was around 81 mcm/y, with the Netherlands being a net exporter due to substantial reserves.
• Demand: In 2011, demand was approximately 49 mcm/y, with the industry and transformation sectors being the largest consumers.
• Net Imports: Expected to rise as domestic production declines, with the country likely becoming a net importer by 2020–2025.
• Storage Capacity: Significant storage infrastructure is in place to ensure supply flexibility. Future investments in LNG installations and storage will be necessary to maintain security.
• Emergency Measures: The transmission system operator (GTS) is responsible for emergency actions during a gas crisis, prioritizing supply to households and small businesses.

Oil Supply Infrastructure

• Refineries: Five refineries, with the majority located in the Rotterdam area, have a total crude distillation capacity of around 1.2 mb/d. Most output is exported.
• Pipelines: Major crude oil pipelines include Rotterdam-Rhine (400 kb/d) and Rotterdam-Antwerp (600 kb/d). Product pipelines, such as the Rhine-Main (250 kb/d), and those supplying Schiphol Airport are also important.
• Ports: Rotterdam is a major international oil hub, while Amsterdam and Vlissingen are key storage and supply centers. The Delfzijl/Eemshaven area is developing new storage capacity for strategic use.
• Storage: The Netherlands has substantial storage capacity, with the Maasvlakte Olie Terminal (MOT) being one of the largest. COVA holds public oil stocks, and industry holds their own stocks as part of normal operations.

Emergency Policy for Oil

• Responsibility: The Minister of Economic Affairs, Agriculture and Innovation (EL&I) oversees oil emergency policy.
• Stockholding Obligations: Both industry and COVA are required to hold emergency stocks. COVA holds 90 days of net imports, while industry holds 13.5 days.
• COVA's Role: COVA fulfils the majority of the country's stockholding obligation, with 90% coverage in 2011. It holds stocks of crude oil, gas oil, and motor gasoline, with a preference for stockdraw in emergencies.
• Decision-Making: The National Emergency Strategy Organisation (NESO) advises the Minister and Cabinet. It includes officials from relevant ministries and the oil industry. Industry is consulted but not involved in decision-making.

Emergency Policy for Natural Gas

• Responsibility: GTS (the transmission system operator) is responsible for emergency measures during a gas crisis, ensuring supply to priority customers.
• Storage and Infrastructure: Storage capacity and LNG installations are crucial for maintaining supply flexibility as domestic production declines.
• Import Dependency: Expected to increase as the Netherlands transitions from a net exporter to a net importer of natural gas by 2020–2025.

Other Measures

• Demand Restraint: The government may implement demand restraint measures during oil emergencies to ensure supply to critical sectors.
• Fuel Switching: Switching to alternative fuels like electricity and bio-fuels is encouraged, particularly in the transport sector.
• Other Measures: Additional strategies may include optimizing regional stockholding arrangements and improving energy efficiency.

Summary of Trends

• The Netherlands is moving towards full import dependence for oil, with declining domestic production.
• Natural gas remains a key fuel and is expected to continue as a net exporter for the next decade.
• The country has a robust oil and gas infrastructure, including major ports, pipelines, and storage facilities.
• Emergency policies prioritize stockdraw, with COVA playing a central role in maintaining public oil stocks.
• The government is committed to increasing renewable energy to 14% of total energy consumption by 2020, while natural gas serves as a back-up for renewables.
• Environmental regulations, such as sulphur content limits, are impacting the competitiveness of the Dutch refinery industry, potentially leading to closures if not addressed.