Gas market 2022: an unprecedented year

Press Release

Groningen, 16 February 2023

“A bizarre year”, is how gas trading company GasTerra refers to 2022 in its annual report published today. The war in Ukraine caused great suffering and distress and had major implications for the energy market. This meant that GasTerra, like the rest of the industry, faced unprecedented challenges in unfamiliar surroundings. High prices led to a record turnover of 35.5 billion euros, however purchasing costs rose correspondingly.

The energy market experienced shortages, high price spikes, energy company bankruptcies and nationalisations, business failures, unprecedented interventions in the market and huge energy bills for businesses and consumers. GasTerra faced new challenges in that market while, in the meantime, activities had to be wound down in connection with the company’s closure.

GasTerra sold 39.2 billion cubic metres of natural gas in 2022, over 10% less than in 2021. Significant price fluctuations and extreme price levels created troublesome situations and dilemmas in terms of gas trade financing and filling underground gas storage facilities. GasTerra managed to completely fill the storage facilities that it has under contract. This was in the best possible interest of security of supply, given the uncertainty over supplies of sufficient gas to Northwest Europe in the winter.

Gas year 2022/2023 represents a turning point for gas extraction in Groningen. In the past gas year, which ended on 30 September 2022, 4.5 billion cubic metres were produced from the Groningen field; this is over 40% less than the previous gas year. In the current gas year the field is on the back burner. In other words, a minimum quantity may be produced in order to keep the wells open but the field may only be used for extra production in exceptional cases. This does not alter the fact that local residents are still very concerned about reinforcements and damage repair.

On two occasions in 2022, GasTerra provided members of the Dutch Lower House with explanations for market turbulence. In March there was a ‘Roundtable Discussion on Russian Gas’, which was held to share views on discontinued Russian gas supplies. In December, Lower House members were given an insight into gas contracts and pricing in a technical briefing.It is impossible to predict exactly how 2023 will unfold. The price cap for consumers in the Netherlands will hopefully provide some peace of mind. However, GasTerra is concerned about the effects of the European price cap on gas trading operations on Europe’s main trading hub. GasTerra CEO Annie Krist: “For 2023, it is my heartfelt wish that Russia brings the war in Ukraine to a speedy end and that energy markets return to calmer waters. But I also hope that we take advantage of the lessons on security of supply, energy savings and energy transition that 2022 has taught us. I look forward to this coming year with the GasTerra team with optimism and confidence.” 

GasTerra’s annual report is published on our website in Dutch. It is also available as a PDF file. The English translation will be available soon. The English translation of the Financial Statements can be found here. Journalists may contact GasTerra’s spokesperson, Jan Hendrik Annema, for further information and clarification: +31-(0)6-11005595 or jan.hendrik.annema@gasterra.nl.