Dutch government caps Groningen natural gas output until July
Production from the giant Dutch gas field Groningen will be capped at 16.5 billion cubic metres (bcm) until 1 July 2015, a statement from the Dutch government said on Monday evening.
This cap will allow the government to decide whether to limit annual production from the field by either 39.4bcm or 35bcm, depending on the outcome of further investigations. The restriction lasts until July so that both options are viable come the second half of 2015.
In 2014, the Dutch minister of economic affairs, Henk Kamp, announced that the maximum output for 2015 would be 42.5bcm and 40bcm in 2016. However, public concerns over the frequency and strength of tremors in the Groningen area and on the advice of industry experts, the ministry decided to lower the maximum caps.
On 16 December 2014, the minister revised the output limits down to 39.4bcm for 2015 and 2016. The new statement delivered by Kamp on Monday opens up the possibility of a further production cut.
The announcement would mark a 3.2bcm reduction in output for the first half of the year on the assumption of a flat production rate through 2015 with a total output of 39.4bcm.
The Summer ‘15, Q2 ‘15 and Q3 ’15 products on the TTF all climbed more than €0.80/MWh over Monday’s session with a considerable bullish movement 15 minutes before and then through the close. Thomas Rodgers