Foreword by the Executive Board
Staying on course in turbulent times
In 2023 Gasunie is celebrating its 60th anniversary. It’s reached an age when, were it a person, it would be slowing things down a bit. But that’s certainly not the case with us. Gasunie is really being put to the test. While we are busy shaping our new role in the energy transition, in our existing role – ensuring that sufficient natural gas can continue to reach our core markets – we are facing unprecedented challenges.
In 2022, the European gas market entered a new era. By invading a sovereign neighbour and causing untold suffering there, Russia has sidelined itself as a major energy supplier. Europe has since found new suppliers, but the price is high. How long can our energy-intensive industries keep up with their international competitors? Can the local bakery pass on its higher costs to its customers? And will consumers be able to pay those higher prices and keep on top of their own energy bills?
At the same time, in times of darkness it’s often easier to see the points of light. We are proud that we succeeded in doubling the Dutch import capacity for LNG in record time. With this we have been able to make a contribution to the security of supply in Europe, a contribution that should not be underestimated. From the drawing board to commissioning, the EemsEnergyTerminal took less than six months to create thanks to the collective, unified efforts of Gasunie employees, customers, contractors and government bodies. Though not the only LNG capacity expansion project in Europe, EemsEnergyTerminal was the only one that came ‘on grid’ before the start of winter.
It can be done!
The key lesson from EemsEnergyTerminal is that energy transition projects in the area of CCS, hydrogen, green gas and heat can be realised quickly by connecting the right parties and then everyone getting together to consider how to make it possible, rolling up their sleeves and seeing it gets done. The impossible becomes possible once everyone is aware of the importance and the urgency. By building smartly on what we have, Gasunie can support the expansion of the electricity infrastructure with the transmission and storage of green molecules and help make the manufacturing and chemical industries more sustainable.
A second lesson is that the EU will have to meet part of its future green energy needs through production within its own region. The other part will need to be imported from many different countries so that energy can never again be used as a pressure card. Gasunie is preparing for this in its hydrogen strategy, by developing infrastructure for both parts.
In 2022, it also became clear that it pays to be a hub for international energy flows – with robust connections with surrounding countries – and to pay attention to transport by ship in addition to pipeline transmission. Without our interconnectors, quality conversion capacity and the knowledge and skills of our colleagues at the Gate terminal, our starting situation in February 2022 would have looked very different.
Wake-up call
Where we used to take for granted that energy would always be cheap and abundantly available, this view changed on 24 February 2022. Let this be a wake-up call for all of us. There is still a lot of work to be done to ensure that sufficient natural gas will be available over the winters to come. And above all, let it be our cue to drastically accelerate the energy transition, the sign that all parties involved need to recognise the importance, seek collaboration, strive for the common ‘optimum’, and dare to distribute the risks fairly. Let’s do this so that we can look back in 2050 and see that, in terms of the energy transition, 2022 and 2023 were a turning point for the better.
For Gasunie, 2022 was a year of extremes. Our social relevance has increased, as has our workload. Higher auction revenue resulted in higher profits, which will be returned to the market while we are also faced with the increased purchase price of energy. What was disappointing was the severe delay in the completion of the Zuidbroek nitrogen plant. We welcomed many new employees, people who are ensuring that, even after six decades, Gasunie is still a book in which the next chapters of the energy sector will be written. At the same time, reining in the gas crisis and seeing that our transition projects were built demanded a lot from our people. We are extremely proud of the dedication, creativity and perseverance of our staff. They are the unifying force referred to in our very name: Gasunie.
Han Fennema, Janneke Hermes, Bart Jan Hoevers en Ulco Vermeulen
