en.Wedoany.com Reported - The Dutch government has approved a €993 million (approximately $1.2 billion) subsidy for state-owned energy company EBN Capital BV to replenish the country's depleted natural gas reserves. In a letter to parliament, Dutch Climate Minister Stientje van Veldhoven stated that EBN has been authorized to store up to 80 terawatt-hours of natural gas, "provided that the market does not sufficiently do so," with its role seen as a supplementary safeguard.

Since the outbreak of the Iran war, the European benchmark natural gas price has surged by 48%, and the region's progress in filling gas storage facilities ahead of winter has been slow. Current inventories stand at just over 40%, well below the five-year seasonal average of 54%. Meanwhile, competition between Europe and Asian buyers for liquefied natural gas cargoes could intensify, as transport through the key Strait of Hormuz remains largely stalled.

This move by the Netherlands is the latest sign of European countries ramping up support for natural gas reserves this summer. The country's gas storage facilities are currently less than 16% full, compared to over 36% at the same time last year. The minister noted that high prices have discouraged private companies from building reserves, prompting the government to provide subsidies. After implementing stimulus injection plans, Italy and France now have natural gas reserves above the EU average, while Germany has stated it will not intervene.

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