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Maguire: Gas consumption in Europe's largest gas trading hub reaches new lows

The gas-fired power production in Europe's biggest gas trading hub has fallen to a record low, dealing a new blow to the natural gas bulls that see Europe as an important growth market for LNG and pipelined supplies.

The Netherlands has a large pipeline network and is centrally located, which gives it a unique insight into the gas supply and demand trend.

According to the energy think tank Ember, The Netherlands has been a gas-consuming country for many years. From 2000 to 2020, natural gas accounted for more than half of its electricity supply.

Since the Russian invasion of Ukraine 2022, Dutch utilities aggressively reduced natural gas consumption. In the first half 2025, gas power plants only supplied a third the country's electrical energy.

The rapid and sustained reductions in gas consumption by a once integral gas consumer is alarming for major gas producers and exporters like the United States and Russia, and could herald more cuts for Europe.

Small scale, big impact

The Netherlands has a considerable impact on regional and global affairs despite its small population and size.

The massive port facilities in Rotterdam, the Netherlands, are the primary entry and exit points of crude oil, refined product, crops, and many consumer products into and out Europe.

The Netherlands also has a strong high-tech sector and several multinational corporations that rely on its infrastructure and global connections.

The strategic importance of the country is reflected by the Dutch government's position in the European Parliament. It is a highly influential group that plays a major role in shaping regional trade, agricultural and financial policies.

CLEAN DRIVE

Dutch utilities are also leaders in the adoption of clean energy, despite being home to Shell's former headquarters.

Ember data show that between 2022 and 2024 the Netherlands saw a 27% increase in electricity produced from clean energy sources compared to an 16% increase in clean power production in the European Union during the same time period.

This growth was largely due to a 57% increase in wind power, and a 34% increase in solar power.

The rapid increase in renewable sources of energy has changed the mix of electricity generated in the country.

Up until 2023, most of the electricity in the country came from fossil fuels. However, since then, clean energy has become the main fuel for electricity production.

In 2024, despite the switchovers, electricity supply reached record levels to meet the demand for electricity in the country.

The wholesale power prices of the Netherlands are also competitive in Europe, as the Dutch system has reduced gas consumption and increased clean energy output. They have been slightly lower than Germany's average so far in 2025.

According to LSEG, the average Dutch wholesale spot electricity price in 2025 will be around 90 euros per Megawatt Hour.

This price is about a third higher than in France with its nuclear power, but lower than in other European countries such as Italy and much of Eastern Europe.

Other nations in the region will be influenced by the fact that Dutch electricity costs are in line with regional averages despite the reduction in fossil fuel usage in electricity production.

It is possible to see the successful transition of fossil fuels from being the main pillar in the country's electric system until 2022, to a smaller role in 2025 as a model for other utility systems also eager to reduce fossil fuel usage.

Dutch companies with expertise in solar, offshore wind and batteries work with regional utilities in order to boost clean power production in other countries.

Dutch companies are pioneering the use of green energy in order to produce green hydrogen, which is hoped will decarbonise regional power needs and reduce regional dependence on fossil fuels.

The Netherlands have generated a lot of momentum with their clean energy push. This is likely to spread well beyond the national borders, and could lead to further reductions in gas consumption across Europe in the coming years.

These are the opinions of a columnist who writes for.

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(source: Reuters)