Europe’s largest natural gas field set to close substantially earlier than planned by Dutch government

Europe’s largest natural gas field is set to be closed substantially earlier than in 2030, as the Dutch government currently plans. The Groningen gas field has been linked to a higher incidence of earthquakes in adjacent areas in recent years and is therefore due to be closed prematurely.

While natural gas consumption in the European Union can be expected to follow a rather upward trend, the expected trend in production is the exact opposite. One reason is the declining production at the Groningen field – primarily thanks to this field, the Netherlands is among the largest natural gas producers in the European Union. Within Europe, only Norway, which is not an EU member state, produces more natural gas.

According to the latest statements by the finance minister, however, clouds are gathering over gas production in Groningen. As early as March last year, the Dutch government announced that production at Europe’s largest field would end by 2030 at the latest. Now, however, it appears that the end of production will come much sooner.

“Natural gas production from Groningen will no longer be needed very soon. The situation is changing much faster than anyone could have anticipated some time ago,” finance minister Eric Wiebes told Dutch radio.

The finance minister’s remarks suggest that the earlier end to production is not due to a government decision, but rather to reasons related to the gas field itself.

“We thought gas production could continue indefinitely, which is why I said production would end in 2030. However, I will soon be able to give a specific date,” the finance minister added.

The first gas was extracted from the field in 1963, and production peaked in 1976, when a total of 88 billion cubic metres (bcm) of natural gas was produced.

Since 2013, however, production has gradually declined – from 54 bcm per year to just 18 bcm per year in 2018. In the gas year beginning in October 2019, production is expected to reach only 12.8 bcm.

Especially in recent years, production has been limited by government decisions due to frequent earthquakes linked to gas production in the area.