Exploration & Production

New Groningen output cap proposed

The Dutch government has proposed a cap of 19.4 bcm for production from the giant Groningen field for the 2018/2019 gas year The Dutch government has proposed a cap of 19.4 bcm for production from the giant Groningen field for the 2018/2019 gas year.
By Catriona Scott 28 August 2018 0 32328
Gas production infrastructure in Groningen. (NAM)

Directional impact on forecast:
Bullish for European hub prices

The state-imposed cap for output from the Netherlands’ Groningen field is expected to be dropped to 19.4 billion cubic metres for the 2018/2019 gas year. The proposal for the reduced limit was made on 24 August and is in line with the government’s plans to reduce production from the field as quickly as possible. The new limit is a 10% decline from the 21.6 bcm cap in place for the current gas year.

The government announced...