Reuters: Dutch gas super store banks on better times ahead

A giant new Dutch gas storage facility will collide with a weak European gas market, hit by low demand as the continent battles its economic ills.

But it will enhance the market's flexibility and efficiency beyond the gas market's short term horizon of up to 2015, traders and analysts said.

By injecting gas into storage when supply is plentiful and withdrawing it when it is scarce, gas storage sites are key to ensuring there is enough fuel to meet demand during winter peak demand.

Like the Dutch Gate liquefied natural gas (LNG) terminal at Rotterdam, the site may initially be underused during the downturn, but will inject more life into the traded gas market in the longer run.

Abu Dhabi's National Energy Company (TAQA), Taqa has announced that its 4.1 billion cubic metres (bcm) - around 7.5 percent of Dutch annual gas demand - unit at Bergermeer will start auctioning the bulk of its capacity auctions annually from 2014.  MORE