THE HAGUE, 28/08/07 - The Netherlands pays too little attention to energy in its foreign policy. The Dutch "are the only ones that do not make package deals with oil or gas-rich countries," Roland Berger Strategy Consultants said in a report yesterday.

"Where other EU countries win the favour of gas-producing countries en masse via an integrated approach by national governments and energy companies, the Dutch government largely holds itself aloof when it comes to the international competitive battle for gas," according to the report presented yesterday.

The Netherlands is currently in a position to meet its own energy needs, but in only five years, the country will be dependent on imports of an estimated 30 billion cubic metres of gas, predicts Arnoud van der Slot of Roland Berger. The increasing import demand will also apply to other EU countries, but "the Netherlands is the only country without an integrated approach to economic and energy policy."

The report names three options for meeting growing import needs. These are direct purchase of gas from producing countries, buying on the free market and purchasing from big energy companies in other EU countries. "The close links between these governments and their national energy companies however makes it difficult for the Netherlands to do business," says Van der Slot. "In fact, they have the moral obligation to supply their own governments first. But the free market for northwest Europe also offers little solace due to scarce supplies, and direct negotiations with gas-producing countries does not appear to be an option" for the Dutch government.

In view of the efforts of other European governments, the Netherlands should radically revise its policy regarding the safeguarding of gas supplies, Van der Slot concludes. The Netherlands should ask something in return for favours. "We must consider where we are strong and what other countries need. Then you can make package deals. For example, we could help Russia to become self-sufficient in the area of agriculture. You can also think of water management, an area in which countries like Libya, Qatar and Algeria could make good use of Dutch support and knowledge."

The Dutch government does already do something to support organisations in ensuring gas supplies from Russia, Norway and Libya. Thus, Gasunie is partnering Gazprom in setting up an European gas market. And talks are underway with Statoil on bringing Norwegian gas to the Netherlands. "The Netherlands is not sitting still, but the competition is substantially more energetic. They have all set up various gas pipeline projects and investments already," Van der Slot concludes.