Dutch Economic Affairs Minister Henk Kamp said that the commercial exploration or extraction of shale gas will also be not allowed in the country.
"No answer can be expected to the question of whether it would make sense to further examine the prospect of extracting shale gas until the end of this year.
"At that point, I will present a vision of energy policy after 2020, based partly on recent insights relating to sustainable energy, the better utilisation of geothermal energy, and gas extraction in the province of Groningen."
Additionally, the government has decided against renewing the existing shale gas exploration licenses.
The decision to ban shale gas drilling comes in line with the country’s plan to seek alternative energy sources amid plunging domestic natural gas supplies and due to weakening relationship with Russia, a major energy supplier to the country, reported Reuters.
By the end of the year, the Cabinet will decide on decide on whether shale gas can be included as a broad option in the future for the Netherlands.
Since 2013, the cabinet had initiated multiple studies to assess social effects, environmental consequences, and possible costs and returns of shale gas extraction in the country.
However, determining the amount of potential shale gas and its profitability has proved to be difficult due to absence of test bores.
The studies have also indicated uncertainty about the underground shale gas drilling effects.
The government can however decide on the underground explorations to test presence and availability of shale gas.
Any such exploratory bores are expected to also address the possibilities offered by geothermal energy.