Europe & Russia: Production
Declines in Dutch output resulting from the cap at the Groningen field will weigh on European production.
The 24 bcm output cap at Groningen for the 2016/2017 gas year will see the field’s production fall by 11% on an annual basis in Q4. Although colder temperatures hit much of Europe in November, additional volumes from Groningen are not yet expected to be made available. Overall Dutch production during Q1-Q3 2016 was around 36 bcm, a drop of 10% on an annual basis. The Groningen cap will bring Dutch output down during the coming months and put pressure on European output in Q4.