Netherlands: definitive closure of the Groningen gas field

The Dutch Senate confirms the closure of the Groningen field, marking the end of an era marked by earthquakes and controversy.

Share:

Fermeture gisement Groningue

The Groningen deposit, which has been in operation since 1963, has been the focus of intense debate due to the earthquakes affecting the local population. These earthquakes, although of low magnitude, caused significant damage to local buildings. The final shutdown, scheduled for October 1, 2024, marks a response to the political and social struggles of recent years. This deposit, the largest in Europe, has long been a major source of natural gas, but also of tension.

Political and social implications

The firm announcement of the closure of the valves comes after years of uncertainty. Dutch authorities have kept operations to a minimum, anticipating harsh winters and recent geopolitical tensions, notably due to Russia’s invasion of Ukraine. This decision not only raises questions about national energy security, but also fulfils a moral debt to the people of Groningen.

Reactions and outlook

The local community greeted the news with a mixture of relief and bitterness, as expressed by Groningen Bodem Beweging (GBB), a local campaign group. While some residents are relieved, others remain skeptical about the cessation of earthquakes and the management of compensation. Compensation policy and infrastructure reinforcement remain major challenges for the government, as it strives to reconcile compensation and energy transition.

Stopping gas extraction in Groningen could have major economic repercussions, especially for the local energy industry. However, it also represents an opportunity for the Netherlands to move towards more sustainable energy sources. This transition is in line with global objectives to reduce greenhouse gas emissions, and can position the country as a leader in the responsible management of natural resources.

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto states Budapest will block any European ban on Russian hydrocarbon imports, stressing the impact on household energy costs.
The International Energy Agency anticipates an acceleration in global liquefied natural gas trade, driven by major new projects in North America, while demand in Asia remains weak.
Spanish group Naturgy reports an unprecedented net profit, driven by rising electricity prices and increased use of its gas-fired power plants since the major Iberian grid outage.
The Hague court has authorised the release of Gazprom’s shares in Wintershall Noordzee, following a judicial decision after several months of legal proceedings involving Ukrainian companies.
SSE plc invests up to €300mn ($326mn) in a new 170MW power plant in County Meath, aiming to ensure energy security and support the growing demand on Ireland's power grid.
The Egyptian government has paid over $1 billion to oil majors to secure natural gas production and restore international investor confidence.
CMA CGM and TotalEnergies announce a strategic partnership with the creation of a joint venture to operate a liquefied natural gas (LNG) bunkering vessel with a capacity of 20,000 m³, based in Rotterdam.
The amount of gas flared globally surged to 151 billion cubic meters, the highest level in nearly twenty years, resulting in losses estimated at 63 billion USD and raising concerns for energy security.
The Sharjah Electricity, Water and Gas Authority has completed a natural gas network in Al Hamriyah, spanning over 89 kilometres at a total cost of $3.81mn.
The European ban on fuels refined from Russian crude is reshaping import flows, adding pressure to already low inventories and triggering an immediate diesel price rally.
LNG trading volumes in the Asia-Pacific region reached 1.24 million tonnes, driven by summer demand and rising participation, despite a 21% monthly decline linked to geopolitical uncertainty.
Subsea 7 S.A. has announced a major contract signed with Equinor for the engineering and installation of subsea infrastructure at the Fram Sør gas field, located in the North Sea off the coast of Norway.
The Republic of Congo and Eni confirm the expansion of the Congo LNG project and multiply industrial initiatives to strengthen energy supply and strategic sectors.
Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.