Exploration & Production

Groningen, Rough problems will boost gas prices

Continued production cuts at the Groningen gas field are reducing Dutch exports to marginal levels, increasing price volatility as well as Europe’s reliance on imported LNG and Russian gas Continued production cuts at the Groningen gas field are reducing Dutch exports to marginal levels, increasing price volatility as well as Europe’s reliance on imported LNG and Russian gas.
By Silvia Favasuli 21 April 2017 0 25575
Location of the Groningen gas field, the Netherlands. There is little silver lining for the field’s output. (Skitterphoto)

Reduced production at the Groningen gas field in the Netherlands combined with ongoing problems at the UK’s Rough storage facility should lend some support to European prices next winter.

Production at Groningen is expected to fall following a decision by Henk Kamp, the Dutch economic minister, to reduce output at the field by a further 10% starting from October 2017.

Jonathan Stern, founder of the Natural Gas Research Programme at the Oxford Institute for Energy Studies, told Interfax Natural Gas Daily the move could prove...