Europe & Russia: Production
Weak European gas supply will see the region’s need for imports grow during the early part of the year.
The supply of gas from the Netherlands will fall by around 8% on an annual basis over the coming months. The drop in output may be less severe early in the year, particularly in January as there has been high market demand. However, Dutch output will still decline overall because of the 24 bcm output cap at the Groningen field for the current gas year. Campaigners brought a legal challenge in 2016 to lower the cap even further, but the court upheld the 24 bcm limit. The reduced supply from Groningen will pull down overall Dutch production during the start of the year and through Q2 and Q3 2017.