THE HAGUE, 01/04/07 - Declining national gas reserves are forcing the Netherlands to increase its imports. Companies and consumers will pay higher charges, Economic Affairs Minister Maria van der Hoeven has warned in a letter to parliament.

To absorb declining production of natural gas from Dutch fields in the future via imports, substantial investments in the gas network are required. Households will therefore see their gas bills rise by 0.4 percent annually from 2010, and companies will pay 0.4 to 0.7 percent more. The measures will allow Gasunie, the Dutch gas infrastructure company, to make investments amounting to 1.1 to 1.8 billion euros.

Van der Hoeven announced that a decision may be made shortly to import gas from Norway. The Christian democratic (CDA) minister also said she will adapt the regulations on gas charges in such a way that customers will be able to conclude contracts with fixed rates for years.

Van der Hoeven predicts that more providers of gas will become active on the Dutch market as a result of the investments. The competition thus arising will then eventually push down the price of gas again, according to the minister.

Gasunie's network will be expanded by laying a total of 450 kilometres of new pipelines and the building of compression stations. The expanded network will also be able to supply electricity plants with gas and bring Liquid Natural Gas (LNG) to the Netherlands.

The expansion also fits in with the Netherlands' efforts to make itself the 'gas hub' of Europe, an ambition thought up by Van der Hoeven's predecessor Laurens-Jan Brinkhorst.