Annual Report GasTerra 2024
Gas year 2024 was fairly calm compared to previous years. Gas market prices remained relatively steady, LNG supply was stable and it was not cold enough to have an Elfstedentocht. Having said this, in early January, the Dutch State Secretary for Mining at that time decided to put the Groningen field on standby mode for a brief period. This was a precautionary measure prompted by temperature predictions.
On 19 April, the time had finally come and the Groningen field was closed permanently. For GasTerra, the closure meant the end of an era in which the Netherlands has been supplied with natural gas from Europe's largest gas field for more than 60 years. The phase-out, set in motion several years ago, has therefore reached an important milestone.
Dutch small field production is declining and the development of new fields is facing a lot of public opposition. Over the next few decades our country will therefore remain largely dependent on the supply of LNG. Natural gas will still remain necessary for a long time for a robust energy supply, partly due to stagnation in the energy transition. The delay in the green gas blending obligation, the slow progress in hydrogen developments and the congestion of the electricity grid are challenges that we must address together in the Netherlands. At the same time, the new cabinet faces the challenge of maintaining security of supply in the Netherlands, in which storage facilities will play a major role. GasTerra wants to leave the gas market in a good position and is happy to share market knowledge and insights gained.
GasTerra is still investing in energy transition even though it is winding down its operations. In July the REMO lab, an energy testing site for renewable molecules, was opened with our support at ENTRANCE. Students and researchers are passionate about working here on several green gas and hydrogen projects. We have also commissioned a study into the potential role of synthetic natural gas, also known as e-methane, made from green hydrogen and circular CO2.
It is remarkable that even with a smaller portfolio, GasTerra still played a significant part this year in the Dutch gas market. In 2024 we sold 25.6 billion m3 of natural gas, as against 30.9 billion m3 in 2023. Our turnover fell from €20.3 billion in 2023 to €12.8 billion in 2024 and despite the closure of the Groningen field, GasTerra has been able to meet its obligations and will continue to do so in 2025 and 2026.
CEO Annie Krist about 2024:
'For GasTerra another milestone was our relocation in September 2024. We moved from our beautiful premises in Groningen city centre to a smaller office in one of the two towers on Van Elmptstraat. That the relocation happened at the same time as the opening of the southern ring road in Groningen was a lucky coincidence but it does make our premises very accessible. It is remarkable to see how quickly we have settled into our new home. The flexibility in which my coworkers are handling all the changes is admirable. I hope that we at GasTerra will again succeed in catering to the exact requirements of all our stakeholders in 2025 and that the ongoing phase-out will continue to be accompanied by an undiminished commitment to the gas market.'
The English translation of the annual report will follow soon.
