Home » Business » The Netherlands has to import gas, even though it has the largest field in Europe

The Netherlands has to import gas, even though it has the largest field in Europe

2022-12-17 15:50

publication
2022-12-17 15:50

Despite having the largest gas field in Europe, the Netherlands is forced to import this raw material. Gas production from the Groningenveld field in the northern province of Groningen has been reduced due to subsidence over the field and earthquakes.

The Netherlands has to import gas, even though it has the largest field in Europe
photo. Oil and Gas Photographer / /Shutterstock

In almost sixty years of exploitation, the state has earned 363.7 billion euros from this deposit.

Discovered in 1959, the gas field is not only the largest in Europe, but also one of the largest in the world and, depending on the source, contains between 2,800 and 4,500 billion cubic meters of gas. For comparison, the annual demand of the Netherlands for this raw material is 38 billion cubic meters.

Over the years, Groningenveld’s huge revenues have helped build the strength of the Netherlands. According to the Financieele Dagblad newspaper, the state-owned and international multinationals Shell and ExxonMobil (through its subsidiary NAM) have earned more than 428 billion euros in gas from this field over nearly sixty years. “FD” indicates that Shell and ExxonMobil received 64.7 billion euros in profits, and the government – 363.7 billion euros.

In addition, the field has been a source of gas for almost the entire country for many years. The situation began to escalate in 1991, when earthquakes occurred that caused a variety of mine damage, i.e. damage to homes. The strongest earthquake occurred in 2021: its strength was 3.6 on the Richter scale.

Therefore, in 2014, the government of Prime Minister Marek Rutte declared a phased cessation of mining and in 2018 it was decided that 2022 would be the last year of exploitation of the field.

In early January of this year In 2017, public opinion in Groningen was outraged by the information that due to increased demand from Germany, it will be necessary to increase gas production from Groningenveld from 3,9 billion cubic meters to 7.6 billion cubic meters. Thousands of outraged provincial residents took to the streets to protest the increase in mining.

Finally, despite the gas shortage caused by the Russian aggression against Ukraine, the government confirmed in September this year that in 2023 the Groningenveld operation will be practically completed. However, the cabinet leaves the door open, because it still intends to treat the field in the northern Netherlands as a “reserve source” for “geopolitical reasons” and leaves several wells open.

“The cabinet does not want to give a 100% guarantee to close the filing,” the NRC newspaper wrote recently in an editorial comment.

Official statements, however, are firm. “Only in the event that people’s safety is at risk, for example due to a lack of gas to heat homes or hospitals, will a possible additional use of the Groningen deposit be discussed,” said Hans Vijlbrief, State Secretary for the mines, in October to the lower house of parliament (Tweede camera). .

Meanwhile, state-owned gas company Gasunie said earlier this week that the Netherlands needed additional liquefied natural gas (LNG) terminals to survive the 2023/2024 winter.

Gas in the Netherlands currently comes from the Groningen fields, arrives via pipeline from Great Britain and Norway and in liquefied form via the LNG terminals in Rotterdam and Eemshaven.

From Amsterdam Andrzej Pawluszek (PAP)

what/ swab/

Source:PAP

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.