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.

Share:

extraction de gaz naturel

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.

Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.