The energy transition (the switch from fossil fuels to sustainable energy) is one of the most important challenges of our time. The energy sector is in full swing. As a Dutch natural gas producer, we are therefore in the middle of this. During the transition to sustainable energy, we just can’t do without natural gas. Natural gas makes the energy transition feasible and affordable.
There is still not nearly enough renewable energy to replace natural gas. At the moment, more than 90% of all Dutch homes still need natural gas for a hot house or a hot shower. Even companies cannot yet do without natural gas. For the total energy supply of the Netherlands – including electricity – we are 44% dependent on natural gas. And that percentage is now even rising. We use less and less coal to generate electricity. That is why we use more natural gas in the Netherlands to generate electricity.
We are currently not producing enough gas for our own use. That is why we import a part that we need from other countries. Nevertheless, the central government has three reasons to continue to produce natural gas in the Netherlands.
Gas production provides energy security and employment. Moreover, it provides income for the Netherlands. The income comes from, among other things, tax and the state profit share. In addition, the Dutch State is a co-participant in most of our activities through Energie Beheer Nederland (EBN). Through our projects, the government receives natural gas revenues that flow directly to the treasury. All these gas revenues benefit the whole of the Netherlands. Ultimately, about 70% of gas revenues go to the state.
No. Gas production from small fields will still be needed in the coming years, but has been decreasing in volume for years. The amount of natural gas we produce from small gas fields will continue to decline slowly in the coming years.
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(Unless otherwise stated, references on this website to “Vermilion”, or “the company”, or “we”, or “our” include all persons and operations related to Vermilion Energy Inc. and/or its subsidiaries, including its Dutch subsidiary Vermilion Energy Netherlands BV, whose operations and activities are the main subject of this website)
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