MINISTER
MINISTRY OF ECONOMIC AFFAIRS AND CLIMATE POLICY

H.E. Dr. Robert Habeck

Minister of Economic Affairs and Climate Action
Scharnhorststaße 34 - 37

10115 Berlin,

Germany

Email: u —

The Hague, 2 7 DEC 2021

21321137

Dear Minister,

On December 9" 2021, the Dutch Transmission System Operator (GTS)
received a notification from the German authorities, which stated an
additional demand for Dutch low caloric gas (L-gas) following the adjusted
projections of the German demand for L-gas for the current and coming gas
years. Following this notification, our respective ministries have been in
contact with each other, but have not yet been able to reach an
understanding.

I send this letter, to express my concern in relation to your notification and to
ask you to maintain our close collaboration, in line with established practice,
in order to mitigate the risks and consequences that arise from the new
projections. More specifically, I would like to draw your attention to the urgent
need to end the production from the Groningen field as soon as possible in
order to lower the risk of severe earthquakes. In light of this risk, which at the
moment remains indisputably high, I would like to stress the importance of
avoiding any increases in the demand for gas from the Groningen field.

The news on the increase in the German demand for Dutch L-gas has come as
an unpleasant surprise for the Netherlands. Mainly because it also concerns
the demand in the current gas year: an increase in the German demand in
this gas year forms a risk for the Dutch security of supply and could make it
necessary to revise the production decision for the Groningen field which was
taken in September. The Dutch conversion facilities alone have insufficient
capacity to meet the additional German demand for L-gas. As you can

MINISTER
MINISTRY OF ECONOMIC AFFAIRS AND CLIMATE POLICY

imagine, any increase in the production from the Groningen field would be
very hard to explain to the people in Groningen, who today still experience
the consequences of the past production from the field.

In order to limit and eventually end the safety risks as a result of the
production from the Groningen field, Dutch legislation regulating the
production from the Groningen field was amended in 2019. In accordance
with Dutch law, I can only decide to revise a production decision or take a
temporary measure allowing for an increase of production from the Groningen
field if this is necessary in order to safeguard the security of supply. In my
decision I have to take into account the safety of the people living in the area
of the Groningen field, the safety of the people affected by a shortage of gas
and also other consequences of a shortage of gas, such as the impact on
economic interests and the wellbeing of people affected by a shortage of gas.

What, in light of the limited possibilities for the Dutch authorities to increase
production from the Groningen field, further complicates the issue is that the
German L-gas storages have not been completely filled in the last injection
season. Compensating for that during an ongoing gas year will, in all
likeliness, by media, citizens and politicians be seen as a measure at the
expense of the Dutch security of supply and the safety of the people in
Groningen. What makes it even more complicated is that we are currently
involved in a discussion with the government of Lower Saxony on the
exploration of a gas field in the North Sea below the Dutch-German border
which contains about 60 bcm of L-gas. Up until now the government of Lower
Saxony is unwilling to issue the necessary permits to allow for production.
Although I realize that those permits cannot be issued in time to have an
impact on the current gas year, it will be difficult for me to explain and defend
an increase in the Groningen production while at the same time Germany has
been unwilling to increase its own L-gas production.

Although I realize and appreciate that Germany has actively supported the
phasing out of gas production from the Groningen field for many years now, it
is of vital importance for the Dutch government to prevent additional
Groningen production as much as possible. An increase in production from the
Groningen field is our last resort and can only be used when there is a severe
risk for the security of supply and there is absolutely no other option
available.

With this in mind I would like to ask you to send me a formal notification of
the adjusted forecast in Germany for the current gas year. I would also like to
ask you to inform me on any measures Germany could take in order to lower
the upwards adjustment in the German demand for Dutch L-gas as much as
possible. Finally, in order for me to meet our Dutch legal requirements, I
would need information on the risk for the security of supply in Germany.
What are the risks when there is insufficient L-gas in order to meet the
increase of approximately 1 bcm in the German demand? And what are the

MINISTER
MINISTRY OF ECONOMIC AFFAIRS AND CLIMATE POLICY

risks when the low levels in the German L-gas storages cannot be
compensated during the current gas year with Dutch L-gas?

I appreciate your consick ratiön in this matter and look forward to your
response. FR

  
    
   

Yours since

S) Alok
inister of Economic Affairs and Climate Policy