The Netherlands has halted production at Europe’s largest gas field, in the province of Groningen. According to authorities, production at the Groningen field, which has been shaken by earthquakes for years, ended on Sunday. However, eleven boreholes at the site, opened in the 1960s, must remain open for a year in the event of a “harsh winter”. Despite the closure, experts warn that earthquakes in the region could continue.
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The underground gas fields near Groningen in the north of the Netherlands are the largest deposits in Europe. For more than two decades, residents have complained about earthquakes that are directly attributed to the exploration of deposits. Gas production has therefore been reduced in recent years. In 2021, only 4.5 billion cubic meters of gas were produced in Groningen. In previous years there were more than 20 billion cubic meters.
Gas production is expected to be completely halted as early as 2022. Taking into account the global energy crisis following Russia’s war of aggression in Ukraine, the government declared last autumn that 2.8 billion cubic meters of gas should be restored again. withdrawn – the minimum amount required to operate existing sites and infrastructure.
A report by a parliamentary committee of inquiry published in February accused Dutch authorities of having paid “little attention to the long-term risks” in the success of the promotion. Parliamentarians called on the government to act.
Prime Minister Mark Rutte’s government finally decided in June to completely halt production by October 1. “Due to the uncertain international situation”, it would continue to be possible to extract gas from the site for another year “in very exceptional situations”, the government explained at the time – for example in “very strong colds” or in the case of a gas shortage. The last eleven holes would then be “permanently closed” by October 2024.
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Oil giants Shell Netherlands and ExxonMobil have equal stakes in the NAM group, which has been responsible for exploring the Groningen gas field since the 1960s. A Shell executive also said in March that the government had to close the field.
According to Shell, around 2.3 billion cubic meters were extracted from the deposit. Between 1963 and 2020, around 429 billion euros were generated from Groningen gas. 85% of these profits went to the Dutch treasury.
Although the earthquakes caused severe damage to homes in the area, residents received only minimal compensation, according to the parliamentary report. Those affected are therefore caught in a web of bureaucratic and clumsy obstacles.