The Impact of Policy on Converting Oil & Gas Infrastructure for Future Fuels

Repurposing existing oil and gas infrastructure is key to accelerating the energy transition to a low-carbon energy future. Strong, coordinated policies are essential to reducing risks, driving investment, and ensuring inclusive progress. ROSEN's strategy in this context is centered on regulatory engagement, technical alignment with national projects, and investment in early-stage support to help shape and serve the evolving hydrogen infrastructure landscape. Dr. ir. Sameera Naib, Senior Engineer at the ROSEN Group, highlights the pivotal role of policy in enabling infrastructure conversion. Using the recent case of collaboration with the Dutch Ministry of Infrastructure and Water Management, ANTEA Group and ECORYS, he explains our commitment in supporting the energy transition by aligning closely with policy frameworks and infrastructure development.

The transition from traditional fossil fuels to low-carbon alternatives is accelerating, and converting existing oil and gas infrastructure plays a vital role. National net-zero targets and international climate agreements (e.g., Paris Agreement) pressure industries to reduce emissions. These goals create an urgent need to retrofit or repurpose fossil fuel infrastructure. Reusing existing pipelines, storage facilities, and terminals is often cheaper and faster than building new ones. Strategically using legacy assets helps avoid stranded investments. For companies that specialize in pipeline integrity management, understanding the policy environment is essential to delivering effective infrastructure conversion solutions.

The Importance of Policies in Infrastructure Conversion

Policy frameworks are central to enabling the transition from traditional fossil fuel infrastructure to systems that support future fuels, such as hydrogen, ammonia, biofuels, and synthetic fuels. Their importance can be understood across several critical dimensions:

Graphic showing why policies are important for infrastructure conversion.

Setting strategic goals to help align all the stakeholders (industry, investors, the public etc.).
De-risking investment through policy tools, such as subsidies, tax incentives, and guarantees which reduces financial risk and encourage early adoption.
Ensuring regulatory certainty by providing clear and stable regulatory environments and by setting standardized rules (e.g., for fuel quality, blending limits, safety, and pipeline access etc.).
Driving innovation and adoption by bringing emerging technologies to market
Inclusive transition by ensuring benefits for workers and communities, especially those historically dependent on oil and gas, through skill development and opportunity creation.
Collaborative planning by preventing the fragmentation of national and regional efforts (e.g., hydrogen hubs, CO_₂ networks).

Portrait of Sameera Naib, Engineer at the ROSEN Group.

Without strong, consistent, and forward-looking policies, the conversion of oil and gas infrastructure to support future fuels would face significant delays, higher costs, and increased risk of stranded assets. Policy acts as both a catalyst and a safeguard in this complex transition.

Sameera Naib, Senior Engineer, ROSEN Group

Policy Challenges in Infrastructure Conversion

While policy plays a crucial enabling role in the transition to low-carbon energy systems, several challenges can hinder the effective conversion of oil and gas infrastructure. These issues can create delays, increase costs, and limit private-sector confidence and investment. Below are the key policy challenges:

Regulatory uncertainty due to a lack of long-term clarity, frequent policy changes or shifting political priorities and vague definitions of important terms.
Bureaucratic delays for permits and approvals across local, regional, and national levels can set projects back significantly.
Lack of harmonized standards across regions or countries complicates cross-border infrastructure development and trade.
Gap in financing solutions between fossil fuel infrastructure and clean alternatives, making conversions economically unattractive.
Risk of stranded assets is very high without supportive policy frameworks. Operators may be reluctant to invest in retrofits, fearing that the infrastructure could become obsolete before reaching full payback.
Policy misalignment with market readiness or infrastructure availability leading to bottlenecks.
Social and political resistance leading to delays or cancellations of projects.

Focus on the Netherlands: Policy and Market Context

The Netherlands stands out in Europe for its active efforts to repurpose a large portion of its natural gas infrastructure primarily for hydrogen transport. Government-backed plans anticipate that approximately 60-90% (figures vary from source to source) of the national hydrogen network will be established using converted natural gas pipelines.

In the Netherlands, climate goals are deeply embedded in national legislation. The Climate Agreement and the Dutch Climate Act (Klimaatwet) set ambitious targets of reducing greenhouse gas emissions by 49% by 2030 and 95% by 2050 (compared to 1990 levels). Achieving these goals will require a significant transformation of the energy sector, particularly the infrastructure originally built for transporting and processing fossil fuels.

Policies have been instrumental in:

Defining long-term targets (e.g., 2030 CO_₂ goals).
Allocating public funding and subsidies such as:
- Nationaal Groeifonds
- SDE++
- GroenvermogenNL
- DEI+
- TKI Nieuw Gas
Establishing legal and regulatory frameworks (e.g., the new Energy Act, which will take effect in 2026).
Designating operators and public entities to take over future fuel infrastructure (e.g., HyNetwork Services, a Gasunie subsidiary).

These developments present promising opportunities for infrastructure developers, technology providers, and service partners. However, the policy environment also presents critical strategic risks, such as:

Weak business case and market uncertainty
Many hydrogen projects remain in the feasibility phase. Costs remain high, and long-term demand is uncertain.
Technical complexities and safety
Pipeline conversion must consider the impact of hydrogen on steel, including embrittlement, and ensure operational control, such as pressure monitoring. These factors necessitate expensive upgrades and certification.
Regulatory and ownership complexity
Differing rules for onshore vs. offshore pipelines, and an unclear legal regime governing the transfer of private pipelines to public operators add complexity and potential delays.

Our Contribution to Enabling Policy Objectives

ROSEN’s strategy in the Netherlands reflects our commitment to supporting the energy transition by aligning closely with policy frameworks and infrastructure development. This contribution is structured around three key pillars:

Strategic Alignment
Staying closely aligned with national rollout timelines and infrastructure plans (e.g., HyWay27, H2 backbone).
Collaboration and Partnerships
Strengthening collaboration with grid operators and policymakers to ensure our technical capabilities match evolving regulations.
Targeted Cluster Investment
Investing in market intelligence and early-stage project support, particularly in industrial clusters such as Rotterdam, Groningen, and Limburg, where the repurposing process is most advanced.

ROSEN, in collaboration with ANTEA Group and ECORYS, recently carried out a research project for the Ministry of Infrastructure and Water Management (I&W) of the Netherlands. This study aimed to gain insight into the opportunities for reusing existing pipelines in the Netherlands and to assess the feasibility of multipurpose pipelines. Specifically, the research focused on:

Identifying the current pipeline infrastructure.
Determining the technical and organizational adjustments required for reusability.
Assessing potential risks and barriers to implementation.

In addition, the study examined policy options and measures that the government could adopt to promote the reusability and multipurpose utilization of pipelines.

This research was relevant from social, scientific, technical, policy, and practical perspectives. The study showed that reusing existing pipelines could reduce CO_₂ emissions, support the energy transition, create new business opportunities, and minimize costly new investments. The study provided valuable insights into technical, economic, and policy aspects of pipeline repurposing, aligning with circular economy goals while ensuring safety and reliability. It also offered evidence-based guidance for policymakers and the industry to promote and implement pipeline reuse effectively.

In summary, ROSEN demonstrates a clear commitment to a safe, efficient, and policy-driven energy transition by combining strategic alignment, strong partnerships, and targeted investments. Recent research for the Ministry of Infrastructure and Water Management (I&W) reinforced this commitment by providing valuable technical, economic, and policy insights into pipeline reuse, enabling informed decision-making and practical actions that support sustainability, extend asset life, and accelerate the shift toward cleaner energy transport.