Dutch natural gas generation has dropped to a historic low, indicating a long-term shrink in European natural gas demand.
As the location of Europe's main natural gas trading center, the Dutch natural gas price benchmark affects the entire European market. This country, which was once highly dependent on natural gas for power generation, is now seeing a sharp decrease in the use of natural gas, even hitting a historic low. In the first half of 2025, only about one-third of electricity comes from natural gas, a significant decrease compared to previous levels of dependency. This trend is causing concern for major natural gas exporting countries, as it may indicate further reductions in natural gas usage throughout Europe. The Netherlands has successfully transitioned natural gas from a primary source of energy to a secondary role, with electricity costs remaining within an acceptable range, providing a model for other European countries to follow in their energy transformation.
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