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    Dutch gas grid operator says Groningen output can be lowered as planned next year

Summary

GTS notes that Europe has stocked up on gas ahead of winter, and high prices have led to demand destruction.

by: NGW

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Infrastructure, Pipelines, News By Country, Netherlands

Dutch gas grid operator says Groningen output can be lowered as planned next year

The Netherlands can proceed with its plan to cut gas production at the giant, quake-causing Groningen gas field next year, as Europe has stocked up on supplies ahead of winter and high prices have led to demand destruction, the country's gas grid operator GTS said on September 19.

Groningen's output is due to be lowered to 2.8bn m3 in the 12 months through to the end of September 2023, ahead of its planned closure that year. Its production in the year up to September 30, 2022 has been capped at 7.6bn m3.

The NAM consortium comprising ExxonMobil and Shell that operates Groningen recently told NGW that production could be raised to 22-25bn m3/year within a short period, if ordered by the government. The Netherlands has had some of its Russian gas supply cut off, because some buyers refused to comply with the Kremlin's decree on paying for shipments in rubles.

While the Netherlands has access to LNG imports, the ramp-up in supply at Groningen would have greater implications for neighbouring Germany, which has been hit hard by Russia's recent cuts in gas flow via Nord Stream 1.