The Netherlands' economy ministry has approved an expansion of the Bergermeer gas storage facility that may allow operator Taqa to allocate more space at the site in the coming weeks and could provide an additional outlet for European supply.
The ministry today published its final decision, permitting Taqa to increase the maximum gas pressure to 150 bar from 133 bar, which would allow for working gas capacity to be lifted to 5.3bn m³ from 4.1bn m³.
The ministry had issued a draft approval in February, but some stakeholders subsequently raised objections, mainly because of concerns over earthquake risks.
But the ministry reiterated in its final decision that the rise in maximum gas pressure will not increase seismic risk.
No physical adjustments are necessary to allow for more space to be used.
And Taqa may be able to offer more storage capacity at the site already this summer.
The firm said in July that it "could still market some additional storage products before the winter" if it receives the permit this summer, although it may not be able to offer all of the additional 1.2bn m³. Taqa said earlier this week that "there is a very real possibility" that it "will not market up to the full capacity". The rise in working gas capacity by about 30pc "is a theoretical maximum assumption and strongly depends on the economic circumstances, possibilities for transport through the grid, the market, contractual conditions and the technical capacity of the installation", the firm said.
In any event, some additional capacity being made available at Bergermeer could buoy European injection demand in the coming weeks. Inventories across much of Europe have closed in on maximum capacity. And European hub prices for delivery in September-October have remained far below contracts for delivery later this winter, which could encourage uptake of any additional capacity.
Stakeholders that submitted responses to the ministry's draft decision from February can still file appeals against the final decision.
