The Netherlands’ new Groningen gas production plan

Low-calorific natural gas (L-gas) production in the northeastern Dutch province of Groningen has been a key concern for European gas market participants for the best part of two years. Mounting civil unrest around earth tremors associated with Groningen production and the resulting damage to houses and threat to public safety, has forced the government to overhaul its production strategy.

After numerous short-term revisions to the production cap since February 2015, the Dutch government has now published a five-year plan, giving the market a longer-term outlook from the EU’s biggest gas field.

In this white paper, ICIS examines the detail of the new plan and how the Netherlands and the rest of northwest Europe will cope with reduced production of the unique L-gas that Groningen yields.

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