Groningen flex replaced by storage and H-gas conversion

Dutch natural gas production is set to fall to its lowest annual total for well over a decade in 2016, due to production curbs at Europe’s largest low-calorific natural gas (L-gas) field – Groningen - and declining output from the Netherlands’ small fields.

Production from Groningen has been capped at just 24 billion cubic metres (bcm) for the 2016 gas year, around half of 2014’s 42.5bcm.

ICIS looks at why production has been declining, and what the ramifications could be for European gas markets. These impacts include the rise of high-calorific gas conversion and greater usage of the Norg L-gas storage facility, as well as changes in Dutch cross-border flow patterns.

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