Taqa may offer more Bergermeer gas capacity this summer

Operator Taqa may offer extra capacity at the Netherlands' Bergermeer gas storage site later this summer if it receives a permit from the economy ministry allowing it to use more space.

The firm "could still market some additional storage products before the winter" if a final decision in its favour is made this summer, Taqa said today.

But Taqa does not expect "to receive the permit until at least mid-August" because of the summer holiday period, the company said. And once approval has been granted, the firm would still "need time to line up… customers for an auction/tender or alike".

Taqa seeks to raise the site's maximum pressure, which would allow for working gas capacity to be lifted by 1.2bn m³ from the existing 4.1bn m³.

Up to 1.2bn m³ becoming available late in the summer could buoy Europe's injection demand. Stocks across much of Europe, including in the Netherlands, have held at record highs. And most sites could be filled well before the end of the summer even if injections in the coming weeks are much slower than in previous years. This could leave minimal injection demand later on, unless additional space becomes available. Existing capacity at Bergermeer itself has almost been completely filled already, with inventories at over 97pc yesterday morning.

Taqa also said that even once a permit is granted, "the specific timing as well as market conditions" will decide "if and how" the firm will offer additional products. It previously said that market prices will play a role in the decision on whether to increase capacity. Northwest European contracts for delivery over the remainder of this summer have held wide discounts to the front-winter market, suggesting there may be an incentive to raise capacity if the required approval is granted.

The ministry issued a draft approval for increasing maximum pressure earlier this year. But a number of stakeholders raised objections in a consultation that ended in April, largely because of concerns over increased seismic risk.

While a final decision could allow Taqa to offer more space, this could still be subsequently appealed by stakeholders that responded to the consultation.

Taqa previously said that "no changes to construction" would be required for lifting maximum capacity, as an increase in pressure to 150 bar from the existing 130 bar would be in line with the "original plan" on which the site was designed and built.

By Stefan Krümpelmann