The Netherlands has no plans to increase Groningen gas field’s production in a bid to pull down high gas prices and will only consider boosting the field’s output in a supply emergency situation.
The Netherlands has no plans to increase Groningen gas field’s production in a bid to pull down high gas prices and will only consider boosting the field’s output in a supply emergency situation.
"It's very dangerous and the people who live there really detest the idea that I would push open the tap just, for example, to put prices down," Reuters cited the country's secretary for the extractive industries, Hans Vijlbrief as saying that, referring to the danger of earthquakes caused by increasing production.
Gas production could only be increased to respond to "an emergency" situation that would need to be clearly defined, Vijlbrief reminded.
The Dutch government has always held out the possibility that the Groningen field could be tapped again in the event of an emergency that threatened the security of supply.
Meanwhile, in the neighborhood of the Groningen gas field, EemsEnerg LNG imports and regasification terminal has recently received its first commissioning cargo and is expected to start commissioning works soon.
According to the
Global LNG Database®, Gasunie LNG Holdings has already sold out the 8 BCM/Y terminal’s regasification capacity to: Shell 4 BCM/Y; Czech state-run energy CEZ 3 BCM/Y; and ENGIE 1 BCM/Y.
The facility scheduled to start operations in the fourth quarter of 2022.
Backgrounds:
In Feb. 2022, the Netherlands' energy minister reiterated that the government's intention to shut down production at the Groningen gas field remains unchanged despite high gas prices and Russia-Ukraine conflict.
RTL cited Rob Jette as saying that increasing production at Groningen would be "the final, final, final resort in case of a very large conflict that lasts a long time."
The government had said in Jan. 2022 that it expects to increase the amount of gas it allows to be produced from the NAM-operated Groningen gas field to up to 7.6 BCM, from an earlier estimate of 3.9 BCM. “The increase would be needed to guarantee security of supplies and it would make a final decision in April.”
The ministry had cited a delay in bringing a plant online needed to convert imported "high calorie" gas from Norway and Russia, as well as more demand than expected from German customers.
The Netherlands have been winding down production at the Groningen field since 2015, when the country's safety board concluded that the earthquakes it triggers are a direct threat to human health. The quakes also cause widespread damage to buildings in the Northern Province.
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