Get 40% Off
☕ Buy the dip? After losing 17%, Starbucks sees an estimated 20% upside. See the top Undervalued stocks!Unlock list

Netherlands sticks to plan to close Groningen gas field by October - FT

Published 22/01/2023, 07:25
© Reuters.

(Reuters) - The Netherlands remains convinced of the need to close production at Groningen, once one of Europe's largest gas fields, by October following earthquake risks which made it dangerous to keep operating, the Financial Times (FT) reported on Sunday citing a government official.

Mining Deputy Minister Hans Vijlbrief said he would stick to the previously announced timetable and aimed to shut the earthquake-prone gas field by Oct. 1, with the option of keeping it operational one more year if there was a shortage of gas in Europe after the winter.

Although the Dutch have come under pressure to change course due to the energy crisis triggered by Russia's invasion of Ukraine, the government has repeatedly said production could only be resumed as a last resort if gas supplies for Dutch households run out.

Production at Groningen was scaled back sharply over a period of years in the 2010s after the Dutch government and producer NAM, a Shell-Exxon joint venture, realized the earthquakes it caused posed too great a threat to life and property.

"It’s very, very simple: everybody who has some knowledge of earthquake danger tells me that it’s really very dangerous to keep on producing there. I’m quite convinced it’s wise to close it down," Vijlbrief said to the FT.

Netherlands on Friday said that it will stop the search for new onshore oil and gas fields in a drive to reach its climate goals and limit seismic risks.

The Netherlands for decades was one of Europe's main gas suppliers through the Groningen field in the north of the country, until production there was cut to a minimum to limit the seismic risks.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

I suggest a greater 'seismic risk' would be what the Netherlands, and in particular the rest of the EU is experiencing now - they are having to import more gas.  And which so called 'experts' were used to determine earthquake risks, the same anti-business ilk that determined the need for lock-downs and everyone and their dog needing a medical intervention?  And just how can it be 'greener' to transport imported gas, rather that use local resource readily available?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.