16th June 2016 | Posted by: Daniel Birkett | Industry News

Sources claim that production at the Groningen gas field in Holland may be reduced further, potentially impacting supply levels across Europe.

Dutch newspaper, De Telegraaf has reported that the Groningen gas field may see production levels reduced further, according to unnamed sources. A cap was placed on the gas field in December 2015 due to environmental concerns but production may be capped again, from 27bcm to 25bcm.

Groningen gas field

The field is operated by NAM, a partnership between Shell and Exxon Mobil which proposed that production should be reduced to 27bcm, rising to 33bcm in the event of a very cold winter. Production at Groningen was as high as 54bcm but a number of earthquakes which were linked back to gas extraction methods in the Northern Province led to government imposed cuts.

The Dutch Ministry of Economic Affairs spokesman claims the government will publish its preliminary view on potentially reducing output in two weeks (June 30th - July 1st). In the meantime officials will listen to recommendations made by NAM, the National Mines Inspectorate and six other parties.

The final decision on whether production at the Groningen gas field will be cut for the next gas year will be made in mid-August.