Groningen Output Capped at 8.1bn m3 in 2020-21
The Dutch government said on September 21 that production at the giant Groningen field would be limited at 8.1bn m3 in the gas year starting October 1 2020, down from 11.8bn m3 in the previous 12 months.
This is 1.2bn m3 less supply than Dutch gas regulator SodM had forecast in June and much less than the recommended safe maximum of 12bn m³.
The Netherlands has been lowering output at Groningen over recent years to limit seismic risks. Earlier production activities were found to be causing earthquakes, damaging local structures.
Production is due to end completely in mid-2022, but the government wants to keep some facilities on stand-by in case an extremely cold winter causes a spike in demand. However, the NAM joint venture between Shell and ExxonMobil that operates Groningen has said it is against using the field as a back-up source of supply, describing the plan as "undesirable and unnecessary."
Output would need to be maintained at a minimum level of between 2.4 and 5.8bn m3/yr for the field to serve this role, NAM argues.