Dutch Court Limits Groningen Gas Production to 27 bcm

A Dutch Court has today (Wednesday) temporarily limited gas extraction in Groningen to 27 billion cubic metres (bcm) of gas a year, adding that the NAM consortium could be allowed to ramp up production if cold weather necessitates doing so.   

Groningen is the biggest gas field in Europe. It supplies the Netherlands, Germany, Belgium and France. 

"NAM is temporarily limited to extracting a maximum of 27 billion cubic metres of gas from the Groningen field. This may be raised to a total maximum of 33 billion cubic metres only if the 2015-2016 gas year proves to be relatively cold," reads a statement released on Wednesday. 

NAM is an exploration and production company focused on four regions of the Netherlands--Loppersum, South West, Eemskanaal and East. It is a joint venture between Royal Dutch Shell and ExxonMobil. Each company holds a 50% interest in NAM.

The Council of State’s Administrative Jurisdiction Division also ruled that the temporary suspension of gas extraction in and around Loppersum will remain in force. 

"The Administrative Jurisdiction Division’s ruling in the judicial review proceedings cannot be appealed," it said.

The ruling followed appeals from about 40 individuals, housing corporations and environmental groups.

In January, the Economy Ministry reduced Groningen's output target for 2015 from 42.5 bcm in 2014 to 39.4 bcm. In June, it further reduced it to 33 billion cubic meters.