With the additional agreements concluded between industry association Element NL, the association of Dutch oil and gas producing companies, state-owned company EBN, and Minister Sophie Hermans (Ministry of Climate and Green Growth), the government is taking a further step to deploy Dutch gas production from small fields in support of the energy transition.
The sector agreement Gas production in the energy transition was concluded in April 2025. The agreements on newly developed onshore gas production were subsequently elaborated further, including through a scheme under which part of the revenues from new gas production in existing licenses flows back to the regions where gas production takes place.
> Download the Sector agreement Gas production in the energy transition - chapter Onshore
The agreements also contribute to reducing the Netherlands’ dependence on imports and strengthening security of supply. As long as the Netherlands continues to use natural gas to a significant extent, production from domestic resources reduces reliance on foreign suppliers and contributes to a stable and reliable energy supply.
Following consultations with regional administrators, EBN, the companies concerned, and the Ministry of Climate and Green Growth have agreed that the regions will receive 5 percent of the profits generated by companies from new onshore gas production in existing licenses. Of total natural gas revenues, more than 70 percent of the profits flow to the state treasury, but under this benefit-sharing arrangement the regions will now share directly. The 5 percent of benefits for the regions are additional on the 70 percent benefit sharing that is already in place. In the coming months, the practical aspects of benefit sharing will be further developed together with the regions.
“This is an important part of the onshore agreements we have made. Engagement and local support for onshore gas production are essential for all parties, and we achieve this in part through these benefit-sharing arrangements,” says Gerda Verburg, Chair of industry association Element NL.
In addition, a number of elements are standardized through these agreements. For example, decentralized authorities will henceforth be involved in new projects according to a fixed framework. The agreements also define where gas will and will not be produced, and which conditions apply to responsible onshore gas production.
“Thanks to these agreements, we as a sector can make a valuable contribution to the energy transition and reduce our geopolitical dependence on LNG imports,” Verburg adds. “The Netherlands is still more than 80 percent dependent on fossil energy, so let us meet that demand with the most sustainable alternative available: natural gas from our own soil.”
In April, the sector agreement already set out the following concrete arrangements:
More efficient cooperation
- Government and industry will work more closely together to reduce costs and risks.
- A joint planning approach (‘regional programming’) will be established for offshore projects.
Faster and more transparent permitting process
- Permitting procedures will become faster, but above all clearer and more predictable, without compromising due diligence.
- Parties will strive for swift decision-making within statutory frameworks and reasonable timeframes.
Increasing exploration activities
- Additional exploration activities are needed to improve gas production.
- The cabinet is examining how financial risks can be limited. In exceptional cases, EBN may take a larger stake in exploration projects to reduce risks for companies.
- If a company decides not to develop an area, others may take over, ensuring that potential gas resources remain accessible.
