Gas Extraction from Groningen Field: Government Announces Completion by October 2024, Impact on Residents and Energy Transition

2023-06-25 13:07:59

Gas extraction from the Groningen field in the Netherlands will be completed by October 1, the government announced on Friday. In extreme conditions, production can be started on a limited basis, but according to plans, the pipes will be shut down for good in 2024. The reason for the decision is the frequency of earthquakes that threaten both properties and residents caused by drilling. The field, operated by a joint venture between Shell and Exxon Mobil, still holds vast natural gas reserves, but production has been almost completely halted in recent years as drilling-related tremors have caused widespread damage, health problems, and psychological distress to nearby residents. Natural gas extraction in Groningen caused nearly 1,600 earthquakes in the area In the event of an emergency, it will still be possible to extract a limited amount of gas in the following year, but according to the government, the extraction facilities will be closed permanently in 2024. “If it’s very cold and there are problems at a storage facility, we can restart one or more facilities. But the decision is that there will be zero extraction from October 1st,” Deputy Mining Minister Hans Vijlbrief told reporters. Vijlbrief added that he had “no doubt” that the facilities would be shut down after October 2024, as gas imports and the energy transition would ensure that enough gas would be available for Dutch users by then. Gas extraction took place in the area for more than 60 years. In October of last year, the production of what was once one of the largest natural gas fields in Europe was limited to the minimum necessary to maintain operations (about 3 billion cubic meters per year), with the aim of closing the field a year later, but in 2024 at the latest. field. This deadline was brought about by an unusually strong earthquake in 2018, which caused the government to quickly shut down production. It kept that promise despite growing international pressure to deliver more gas to counter an energy crisis triggered by Russia’s invasion of Ukraine. However, in the years leading up to the decision, both the government and the energy companies involved severely underestimated the risks of production for the people living in the province, a parliamentary inquiry found earlier this year. Groningen’s gas brought a total of 363 billion euros to the Dutch state coffers Production was increased to nearly 54 billion cubic meters in 2013, despite the fact that a year earlier in Groningen, the region’s worst earthquake to date had occurred. Gradually reduced caps on extraction were only introduced in the years that followed, as protests from residents and campaigners grew stronger. The production, which was discovered in 1959 and reached a peak of 88 billion cubic meters in 1976, was still close to 30 billion cubic meters six years ago. Gas from the Groningen field has brought an estimated €363 billion to the Dutch coffers since production began in the 1960s, laying the foundation for the country’s state of prosperity.
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