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Dutch government eyes gas storage levy from 2026

  • Market: Natural gas
  • 18/09/24

The Dutch government has proposed a new levy from 2026 to recoup the cost of filling the Bergermeer gas storage facility since 2022 in its 2025 budget plan.

The government's draft budget presented on Tuesday said that preparations were ongoing to introduce a levy on booked capacity on top of gas system operator GTS' transport tariffs. The levy would apply to both domestic users and "users abroad" to ensure that "the costs associated with the gas storage filling measures are borne by the users who benefit from the filling of storages", the government said.

The levy is expected to generate €146.7mn/yr ($163mn/yr) from 2026 until at least 2029, according to the draft budget. That phrasing suggests that the levy may not take effect before 2026.

The government tasked state-owned holding company EBN with filling Bergermeer to 90pc of capacity in summer 2022 if market participants failed to do so, and has left that legal requirement in place until 2025. And the Dutch government's draft budget earmarks more money for the stockbuild in coming years, amounting to about €256mn for 2025 and €233mn for 2026, up from €67mn in 2023 and €105mn in 2024.

The Hague's new coalition government has focussed on gas security of supply, proposing further steps to support domestic production and ensure that storages are filled. As part of this, it intends to propose legislation to prevent and react to an energy supply crisis, while aiming to reduce demand, maintain LNG capacity and focus on long-term contracts, the government said. The government also plans to amend the mining act, the gas act and other existing laws to "structurally safeguard the security of gas supply", it said.

In its government programme released on Friday, the cabinet said it was examining how the government could more proactively ensure the gas stockfill. All the country's storage sites remain "crucial for guaranteeing security of supply and realising energy independence", the budget said. This includes the country's largest storage site at Norg, where the government compensates operator Nam — a 50:50 joint venture between Shell and ExxonMobil — to use the facility to ensure security of supply. The government has paid Nam €491mn for that this year, down from €757mn a year earlier, because of lower gas prices, the budget shows.

The German government implemented a similar storage levy in 2022 to recoup the cost of filling storage sites ahead of the winter heating season. But after EU pressure from central and eastern European neighbours regarding the large negative impacts of the levy on their effort to diversify away from Russian gas, the German government decided to stop charging the levy on outbound flows from the beginning of next year.


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