The largest European gas field gets a significant production cut

   244

The Dutch parliament adopted a production cut at the Groningen gas field – the largest in Europe, Reuters reported on Thursday. According to the media, production at the field will be reviewed annually.

“This annual review is a new development but a prudent and understandable one in the context of the seismic concerns,” Craig Lowrey, a consultant at UX Energy Services in the UK says. “Seeking stability for five years is likely to be welcome news to the markets given the extent of the declines in output seen over the last two years.”

It is not the first reduction that the gas field faces. In June the legislature already limited the production to 24 billion cubic feet a year citing a high risk of earthquakes caused by production activity. On Thursday the government agreed to cut the production even more then to the 24 billion cubic meters, though Economics Minister Henk Kamp referred to that figure in June as a capacity that would guarantee customers, both in Holland and abroad, that they have enough gas to heat their homes in the winter. He explained that Germany is now seeking for alternative energy, reducing European gas demand.