Extended phase-out and a relatively calm gas market
GasTerra experienced another extraordinary and challenging year in 2023: high energy prices and far-reaching geopolitical conflicts, bringing significant turbulence and concerns for consumers and industries. As the year went on, relative calm returned to the gas market. Rapidly growing LNG supplies, a very mild winter and various support measures in Europe and the Netherlands were the main reasons for this. Setting a price cap in the Netherlands eased the pain of the energy crisis slightly for many consumers.Although still at a fairly high level compared to long-term averages, prices have fallen from being ‘extremely high’ in recent months. Nevertheless, we have to accept that this is only relative calm until Europe has sufficient supplies of energy that are guaranteed over the long term. Renewable energy production is erratic and even flagging in some areas and these factors, together with global unrest, make it difficult to build up robust supplies.Together with our shareholders, we had to take the decision to spend another two years phasing out our activities. The wind-down of our gas portfolio turned out to be more complex than initially envisaged, partly due to unusual market conditions. We anticipate that these two extra years, 2025 and 2026, will enable us to discontinue or transfer all our activities.
The phase-out can be clearly seen in our results and activities. The discontinuation of our purchases from the Groningen field, the fall in trading volumes and reduction in turnover form the main elements of that phase-out.
In 2023 we sold 30.9 billion m3 of natural gas, as against 39.2 billion m3 in 2022. Our turnover fell from €35.5 billion in 2022 to €20.3 billion in 2023, still a respectable amount.
The fact that our activities are winding down is also reflected in the way we are reporting in our annual report. While maintaining quality and continuing to be properly accountable for our results and our remaining activities, from now on our annual reports will be considerably simpler and shorter.
I would like to thank all our staff for their hard work in 2023 and I hope that 2024 will be a year with fewer wars and conflicts, more room for nuance, unity and - closer to home- a stable gas and energy market that can underpin the much-needed energy transition.
