Germany, Netherlands push North Sea drilling to shun Russia

Bloomberg

Germany and the Netherlands are moving closer to starting new gas production in the North Sea as part of broader efforts to reduce reliance on Russian energy imports.
The German state of Lower Saxony and Dutch energy company ONE-Dyas BV aim to pump natural gas from undersea deposits 20 kilometres (12 miles) north of the islands of Borkum and Schiermonnikoog, according to the state’s Ministry for Economic Affairs.
A final investment decision is expected by summer, and drilling could start by the end of 2024, ONE-Dyas said.
European countries are rushing to reduce dependence on Russian energy, with gas being the key sticking point.
An ongoing payments dispute has already prompted Russia to cut supplies to Poland and Bulgaria, adding urgency behind political efforts to reduce exposure to Moscow. That could prompt authorities to cast aside environmental concerns about new drilling.
While the European Union plans to phase out oil and coal imports from Russia, gas is harder to offset because of the large volumes involved and because of pipelines and other infrastructure developed over decades.
Germany has managed to reduce its dependence to 35% from the more than 50% last year by securing emergency shipments of liquefied natural gas, but further progress could be difficult as Europe’s largest economy currently lacks terminals for the fuel.
The government is finalising legislation that would speed up the approval process for LNG projects, according to Economy Minister Robert Habeck, who will visit. The Lower Saxony coastal town will be a location for a floating LNG import terminal.
“More than ever, we now have to base our energy supply on more robust pillars,” Habeck said in a statement. “We are in the process of freeing ourselves step by step from the grip of Russian imports.”
The North Sea exploration area would help fill the Russian gap, with the potential to produce as much as 4 billion cubic meters annually, according to Lower Saxony.