Shell plc seeks full compensation from the Netherlands under the Energy Charter Treaty (ECT) over measures tied to the closure of the Groningen gas field. The Dutch government says it will defend itself in the case at the International Centre for Settlement of Investment Disputes (ICSID). Two of the three arbitrators accepted their appointments in July 2026, and no presiding arbitrator has been listed.
Latest development Jul 28, 2026
On July 28, 2026, Zachary Douglas, appointed by the Netherlands, accepted his appointment as arbitrator. Jay Alexander, appointed by Shell, had accepted on July 1, 2026. The International Centre for Settlement of Investment Disputes (ICSID) has not yet listed a presiding arbitrator.
Why it matters
The tribunal will decide whether the Netherlands owes Shell compensation under the Energy Charter Treaty for the measures that ended Groningen gas production. The claim proceeds under the treaty’s sunset clause after the Dutch exit, beside a parallel ExxonMobil claim.
Background
Nederlandse Aardolie Maatschappij (NAM), a joint venture of Shell and ExxonMobil, produced gas from the Groningen field from 1963. More than 1,600 earthquakes linked to production damaged tens of thousands of homes, and in April 2024 the Netherlands enacted the field’s permanent closure into law. The State charges NAM levies under the Temporary Act Groningen for the costs of damage claims and building reinforcement. NAM, Shell, and ExxonMobil contest those costs in several Dutch arbitrations and court cases.
Shell plc, a British company that says it is an indirect shareholder of NAM, first asked the Dutch government for consultations under the Energy Charter Treaty (ECT). The government reported that request to parliament on January 20, 2025. After two meetings in 2025 produced no settlement, Shell filed a request for arbitration at the International Centre for Settlement of Investment Disputes (ICSID) on December 23, 2025. It says the Netherlands breached the ECT and seeks full compensation, without a public figure. Reports say the claim concerns the closure of the field and the allocation of related costs. The Netherlands left the ECT on June 28, 2025, but the treaty’s 20-year sunset clause still covers existing investments.
ICSID registered the case on January 15, 2026. In a letter to parliament on January 20, 2026, the government said the State would continue to defend itself with all legal means it considers necessary. Shell appointed Jay Alexander as arbitrator, who accepted on July 1, 2026, and the Netherlands appointed Zachary Douglas, who accepted on July 28, 2026. A parallel ECT claim by ExxonMobil’s Belgian affiliate, ExxonMobil Petroleum & Chemical (EMPC), is pending at ICSID. Its tribunal refused EMPC’s request to suspend the Groningen levies on December 24, 2025.
Timeline 8 events
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OrderNetherlands’ appointee Zachary Douglas accepts appointment as arbitrator
The presiding arbitrator has not yet been listed.
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OrderShell’s appointee Jay Alexander accepts appointment as arbitrator
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OtherDutch government reports Shell’s claim to parliament
The State Secretary for the Interior and the Minister of Climate and Green Growth said the State would keep defending itself in all the Groningen proceedings.
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OrderICSID registers Shell’s request for arbitration
The case was registered as ICSID Case No. ARB/26/2 under the ICSID Convention Arbitration Rules.
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FilingShell files an arbitration request against the Netherlands at ICSID
Shell plc, as a stated indirect shareholder of NAM, alleged breaches of the Energy Charter Treaty and sought full compensation.
House of Representatives: Letter of January 20, 2026Climate Litigation Database: Shell PLC v. Kingdom of the Netherlands
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OtherDutch withdrawal from the Energy Charter Treaty takes effect
The treaty’s sunset clause keeps existing investments protected for 20 years.
Both ENDS: Shell files new arbitration against the Netherlands
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OrderGovernment tells parliament of Shell’s request for treaty consultations
Shell had written to request consultations, the first step under the Energy Charter Treaty’s dispute settlement provisions. Two meetings followed in 2025.
House of Representatives: Letter of January 20, 2026 (Kamerstuk 33 529, nr. 1369)
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OtherNetherlands enacts the permanent closure of the Groningen field
Production by NAM, the Shell and ExxonMobil joint venture, had caused more than 1,600 earthquakes.
Drilled: Exxon and Shell sue the NetherlandsThe Ecologist: Shell shock for Dutch climate policy