Gas production in the Groningen field, one of the world's largest natural gas reserves, will cease on October 1st, 2023, Euronews reported based on the government's announcement on June 23.
This decision comes despite the ongoing global energy crisis triggered by Russia's conflict with Ukraine. However, the gas wells will remain operational for an additional year in the event of an exceptionally cold winter. After that, 60 years of gas extraction in the province of Groningen will cease altogether.
The government's move to end gas extraction in Groningen follows concerns about the safety of residents in the region. Several years ago, tremors caused by the depletion of gas fields resulted in damage to homes and farms, leading to a decision to gradually reduce gas extraction. Currently, only enough gas is being pumped to maintain the functionality of gas installations in the area.
Thousands of households in Groningen are still awaiting the reinforcement and repair of their homes due to the damage caused by the tremors. Additionally, compensation is still pending for many affected residents. The Groninger Bodem Beweging, an organization representing the interests of local residents, welcomed the government's announcement as “a step in the right direction” but emphasized the need for a definitive end to extraction this year without the possibility of further extraction.
Gas extraction in Groningen was previously carried out by a consortium that included energy giants Shell and ExxonMobil. However, in 2018, the Dutch government made the decision to gradually halt gas pumping from the field, which contains an estimated 2,800bn cubic meters of gas and has been a significant source of energy for Dutch households.
A parliamentary report released in February criticized the government's handling of gas extraction in Groningen, accusing it of prioritizing profits over the well-being of residents. The report highlighted that the Dutch state earned €363bn from the gas reserves. Prime Minister Mark Rutte offered an apology in response to the report, acknowledging the disregard for the interests of Groningen residents.
“The interests of the people of Groningen have been structurally ignored in natural gas extraction in Groningen, with disastrous consequences,” a parliamentary commission said in a statement in February.
On June 23, Rutte expressed that while the suffering of the past cannot be undone, the government is committed to repairing and strengthening the affected homes and infrastructure. A minimum of €22bn has been allocated for these purposes, along with investments to support the long-term economic development of the region.
Johan Atema, the director of Nederlandse Aardolie Maatschappij (NAM), the company responsible for gas extraction in Groningen, hailed the closure announcement as an important decision. He acknowledged the significant impact of the earthquakes on the lives of Groningen residents and expressed full support for the permanent closure of the gas field. Atema also highlighted the substantial contributions the gas field has made to the prosperity of the Netherlands.
“Looking back, this gas field has simultaneously provided the Netherlands and surrounding countries with reliable energy for decades, and with its yields, it has made a major contribution to prosperity in our country,” he emphasized.
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