Netherlands to close six Groningen clusters on 1 April

Market: Natural gas
31/03/23

The Dutch economy ministry confirmed today that the Netherlands will close six of the 11 remaining production sites at the Groningen low-calorie gas field from the start of April.

The six production sites in question will not be used for the rest of the gas year and the closure process for these sites will be initiated, Dutch state secretary for mining Hans Vijlbrief said today.

But while no more gas will be produced from these sites, the closure decision is "not yet irreversible", Vijlbrief said. "In the current geopolitical situation, the government considers it wise not to take irreversible steps now," he said.

Groningen has been on standby only since October 2022, with production to be limited to 2.8bn m³ in the 2022-23 gas year.

The official "determination decisions" on Groningen for 2023-24 had stipulated the closure of six production locations from 1 April. But Dutch transmission system operator GTS repeatedly advised against an early closure in 2023 on the back of concerns about security of supply, and in January recommended to keep all 11 production locations running in the 2023-24 gas year.

The Dutch state supervision of mines (SODM) on 22 March advised the ministry to close six Groningen production locations from 1 April, against the advice of GTS.

"The safety risks for the inhabitants of Groningen will decrease" if the six production sites close from April onwards, the inspector general of SODM said at the time. Extraction from Groningen increases seismic activity in the region.

"Promises have been made several times to phase out gas production as quickly as possible," the inspector general said. "It is the duty of the government to do everything possible to fulfil this intention for the benefit of the inhabitants of Groningen."

SODM also highlighted that the field should be closed in 2023 or 2024 "at the latest".

The government aims to publish a decision on the full closure of the field in June.

By Florence Schmit

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