popular articles

The End of Gas Extraction in Groningen: Impact and Prospects

The Netherlands puts an end to gas extraction in Groningen, marking a turning point for the energy industry and local communities. Discover the reasons behind this decision and its consequences.
extraction de gaz naturel

Please share:

Gas extraction in Groningen, Europe’s largest, has come to an end after a historic decision by the Netherlands. This decision, taken after decades of earthquakes and controversy, has major implications for the energy sector and local communities.

Historical and geopolitical context

The beginnings of gas extraction in Groningen date back to 1963, a period when the economic benefits seemed to outweigh the potential drawbacks. However, over the decades, the local population has had to contend with low-magnitude, near-surface earthquakes caused by the vacuum pockets formed during gas extraction. These earthquakes caused significant material damage and raised concerns about the safety of local residents.

Local residents, initially pleased with the announcement of the imminent closure of the deposit in 2018, were soon disillusioned by expert warnings that earthquakes could persist for years. In 2022, the Dutch government took the decision to postpone closure due to global energy uncertainties, largely linked to Russia’s invasion of Ukraine.

Jan Wigboldus, president of the Groningen Gas Council, a local association that defends earthquake victims, points out: “A lot of people in the province are suffering from psychological problems because of gas extraction.” In addition, many victims were faced with legal and technical challenges related to compensation.

Economic implications

According to Shell, some 2,300 billion cubic meters of gas have been extracted from the Groningen field. Between 1963 and 2020, some 429 billion euros (adjusted for inflation) were generated by Groningen gas, with 85% of these profits going to the Dutch state. The end of extraction therefore represents a significant change in the country’s finances.

For several months now, huge mountains of pipeline debris have been visible on the grounds of former extraction stations, already dismantled or in the process of being dismantled. Despite the end of extraction, experts believe that earthquakes could continue to shake the region for years to come.

Human consequences

Many houses in the Groningen area have been restored or rebuilt, incorporating earthquake-resistant structures to ensure the safety of their inhabitants. However, the situation remains worrying, as underlined by resigning Prime Minister Mark Rutte during a visit, declaring that there are “tens of thousands of children in a difficult situation”.

The end of gas extraction in Groningen marks a turning point in the Netherlands’ energy history, with major economic, environmental and social consequences. The authorities have pledged to take steps to manage the repercussions of this decision, while meeting the needs of local residents. As the Netherlands strives to diversify its energy supply, the future of the Groningen region and its economy remains uncertain.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Equinor signs €24 billion gas supply deal with Centrica through 2035

Norwegian group Equinor has sealed a gas supply deal with Centrica, covering nearly 10% of the United Kingdom’s annual demand over ten years.
MCF Energy Ltd. has provided an operational update on the Kinsau-1A well in Lech, Germany, indicating significant progress in preparing drilling operations for the third quarter of 2025.
MCF Energy Ltd. has provided an operational update on the Kinsau-1A well in Lech, Germany, indicating significant progress in preparing drilling operations for the third quarter of 2025.
Basin Electric Power Cooperative signed a 15-year power supply contract with Panamint Capital for the full output of the Cottage Grove power plant starting in December 2027.
Basin Electric Power Cooperative signed a 15-year power supply contract with Panamint Capital for the full output of the Cottage Grove power plant starting in December 2027.
New Zealand Energy Corp. (NZEC) reported its financial results for the first quarter of 2025, posting a net loss of $994,550 while focusing on production recovery and gas storage development projects.
New Zealand Energy Corp. (NZEC) reported its financial results for the first quarter of 2025, posting a net loss of $994,550 while focusing on production recovery and gas storage development projects.

Hull Street Energy strengthens presence in Illinois with J-Power asset acquisition

Hull Street Energy has finalised the acquisition of electricity generation assets from J-Power USA near Joliet, consolidating its Milepost Power fleet to nearly 3,500 MW of installed capacity.
Energy company ONEOK has acquired full ownership of Delaware Basin JV, consolidating its natural gas gathering and processing assets in the Permian Basin for a total amount of $940mn.
Energy company ONEOK has acquired full ownership of Delaware Basin JV, consolidating its natural gas gathering and processing assets in the Permian Basin for a total amount of $940mn.
The Trump administration is seeking Asian partners to advance a $44 billion Alaska pipeline project aimed at exporting liquefied natural gas to the Indo-Pacific region.
The Trump administration is seeking Asian partners to advance a $44 billion Alaska pipeline project aimed at exporting liquefied natural gas to the Indo-Pacific region.
Gunvor USA and PureWest Energy partner to deliver certified low-carbon gas backed by traceability technology and aligned with international standards.
Gunvor USA and PureWest Energy partner to deliver certified low-carbon gas backed by traceability technology and aligned with international standards.

ExxonMobil commits to unconventional resource development in Azerbaijan

ExxonMobil has signed a memorandum of understanding with state-owned Socar to explore unconventional oil and gas resources in central Azerbaijan, strengthening its long-standing presence in the Caspian Sea region.
European Union gas reserves are progressing slowly as LNG imports reach an all-time high in May, amid supply tensions and rising prices.
European Union gas reserves are progressing slowly as LNG imports reach an all-time high in May, amid supply tensions and rising prices.
Gazprom increased its daily natural gas exports to Europe via the TurkStream subsea pipeline, reaching 46 million cubic metres per day in May, according to Reuters calculations.
Gazprom increased its daily natural gas exports to Europe via the TurkStream subsea pipeline, reaching 46 million cubic metres per day in May, according to Reuters calculations.
Naftogaz will fund the purchase of new drilling platforms through a €36.4mn loan from the European Bank for Reconstruction and Development, following a sharp decline in gas production due to Russian strikes.
Naftogaz will fund the purchase of new drilling platforms through a €36.4mn loan from the European Bank for Reconstruction and Development, following a sharp decline in gas production due to Russian strikes.

Natural Gas: A Competitive Energy Solution Compared to Renewables Through CCS

Natural gas combined with carbon capture achieves emission levels comparable to wind and solar power, positioning itself as an economical alternative to renewables despite intermittency and high battery storage costs.
Flex LNG has finalised a $175 mn lease financing for its Flex Courageous vessel, generating $42 mn in net proceeds as part of a financial restructuring plan announced earlier this year.
Flex LNG has finalised a $175 mn lease financing for its Flex Courageous vessel, generating $42 mn in net proceeds as part of a financial restructuring plan announced earlier this year.
Sempra Infrastructure has received approval from U.S. authorities to export 13.5 Mtpa of liquefied natural gas to countries without free trade agreements, marking a key step in developing the Port Arthur LNG Phase 2 terminal.
Sempra Infrastructure has received approval from U.S. authorities to export 13.5 Mtpa of liquefied natural gas to countries without free trade agreements, marking a key step in developing the Port Arthur LNG Phase 2 terminal.
EOG Resources finalises a $5.6bn acquisition of 675,000 net acres from Encino Acquisition Partners, consolidating its strategic position in the Utica formation and increasing its dividend by 5 %.
EOG Resources finalises a $5.6bn acquisition of 675,000 net acres from Encino Acquisition Partners, consolidating its strategic position in the Utica formation and increasing its dividend by 5 %.

Natural gas demand for power generation drops in the United States in May 2025

In May 2025, natural gas demand for electricity generation in the United States declined, influenced by cooler weather conditions and a significant increase in solar generation.
Cheniere has signed a long-term gas supply agreement with Canadian Natural Resources to support the planned expansion of its Sabine Pass liquefaction terminal in Louisiana from 2030.
Cheniere has signed a long-term gas supply agreement with Canadian Natural Resources to support the planned expansion of its Sabine Pass liquefaction terminal in Louisiana from 2030.
Cnooc will immobilise its Hai Yang Shi You 301 barge in July, temporarily reducing LNG bunkering capacity in China, where only five units handle supply.
Cnooc will immobilise its Hai Yang Shi You 301 barge in July, temporarily reducing LNG bunkering capacity in China, where only five units handle supply.
The Iraqi federal government initiates legal proceedings against the autonomous region of Kurdistan regarding gas contracts signed with American companies, while Washington reaffirms its support for these strategic energy agreements.
The Iraqi federal government initiates legal proceedings against the autonomous region of Kurdistan regarding gas contracts signed with American companies, while Washington reaffirms its support for these strategic energy agreements.

China Adopts Henry Hub Indexation in American LNG Contracts

Several Chinese companies have signed long-term contracts to purchase liquefied natural gas indexed to the U.S. Henry Hub, despite heightened trade tensions and the recent application of specific tariffs on American hydrocarbons.
Jereh integrates artificial intelligence solutions into its oil operations, increasing fracturing efficiency by 36% through an autonomous electric system tested in the Sichuan Basin.
Jereh integrates artificial intelligence solutions into its oil operations, increasing fracturing efficiency by 36% through an autonomous electric system tested in the Sichuan Basin.
The Australian government has authorized an extension of the major North West Shelf gas project until 2070, sparking economic, cultural, and environmental debates both domestically and on international liquefied natural gas markets.
The Australian government has authorized an extension of the major North West Shelf gas project until 2070, sparking economic, cultural, and environmental debates both domestically and on international liquefied natural gas markets.
Pacific Energy’s Canadian subsidiary plans to produce liquefied natural gas with one of the lowest carbon intensities in the sector, using low-emission technologies and local carbon credits.
Pacific Energy’s Canadian subsidiary plans to produce liquefied natural gas with one of the lowest carbon intensities in the sector, using low-emission technologies and local carbon credits.

Advertising