Exploration & Production

Risk of further cuts to Groningen production

The Dutch regulator has proposed further cuts of up to 50% in output at the Groningen field The Dutch regulator has proposed further cuts of up to 50% in output at the Groningen field.
By Catriona Scott 1 February 2018 0 29386
Groningen gas field, the Netherlands A station at the Groningen gas field in the Netherlands. (Skitterphoto)

Directional impact on forecast:
Bullish for TTF prices

The Dutch State Supervision of Mines (SSM) has recommended that production from the Groningen gas field should be cut to 12 billion cubic metres per year from 2018 to 2022.

The field’s output for the current gas year, which runs from October 2017 to September 2018, is capped at 21.6 bcm. If implemented, the new cap would see Groningen’s output cut by nearly half from the current limit. This would force production down by 50% from the...