The Netherlands plays an important role as the second-largest producer and exporter of natural gas in Europe. Dutch natural gas is shipped directly or indirectly to a lot of countries within Europe through a pipeline system. The Netherlands is also home to the Title Transfer Facility (TTF) natural gas hub, the largest natural gas trading hub in Europe in terms of spot volumes1.
In 2016, country-wide natural gas production was over 47 billion Nm3 (1,750.8 bcf) with 27 billion Nm3 (1,005.8 bcf) from Groningen2. Consumption in the Netherlands for 2015 was approximately 39.9 billion Nm3 (1,486.3 bcf)3. About half of all energy consumed by the Netherlands comes from natural gas, most of which is used for electric power and for the residential and industrial sectors. Most of the natural gas in the Netherlands is produced from gas fields located offshore in the North Sea, but there are also onshore gas fields, including Groningen which is one of the ten largest natural gas fields in the world and the largest onshore natural gas field in Europe.
Annual gas production from the Groningen field is capped to extend field life and to manage subsidence and seismic activity. In addition, the government’s Small Field Policy encourages natural gas production in other areas of the country with production and marketability incentives for producers, who are guaranteed sale of their natural gas to GasTerra at market-based pricing (TTF) for the life of the field. Small fields are produced preferentially over Groningen, with Groningen being used as a swing production to meet any shortfalls in supply4.
Vermilion considers Dutch natural gas to be a key element in the energy mix of the Netherlands. By investing in domestic natural gas production, Vermilion supports our country’s access to a secure, reliable and cost effective supply of energy. The exploration and production of oil and natural gas in the Netherlands supported approximately 6,000 direct jobs and 10,000 indirect jobs in 20145.
(Unless otherwise noted, references on this website to "Vermilion", or "the Company", or "we", or "our" collectively refer herein to any or all of the people and operations associated with Vermilion Energy Inc. and/or its subsidiaries including its Dutch subsidiary Vermilion Energy Netherlands B.V. whose operations and activities are the focus of this website)