Europe & Russia: Production
The court ruling on Groningen puts into question future Dutch and European supply.
The Dutch government had set the cap on production at the Groningen field for this year at 21.6 bcm, but it was challenged on the limit and the five year timeframe for the cap in July. On 15 November, the Council of State ruled that, while production will continue and the cap of 21.6 bcm will remain for this gas year, the government has 12 months to provide further evidence to support the need for continued output from Groningen at the current capped level. The government is also tasked with proving it has taken measures to help reduce gas consumption. While production for the next gas year may be maintained at 21.6 bcm, there is potential for further cuts to production from the field. There is also a risk that output from the field could be halted completely.
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