Gas extraction from Groningen field to minimum level as soon as Zuidbroek II nitrogen installation becomes operational

In its recommendations to the Dutch Ministry for Economic Affairs and Climate Policy, GTS specifies a number of conditions in order to be able to close the Groningen gas field for good. These conditions include the supply of sufficient volumes of high-calorific gas, the continued availability of sufficient storage volume and capacity, and the use of these resources. And the market will in this respect have to take into account the ratio of low-calorific gas to high-calorific gas. If these conditions are met, security of the gas supply is guaranteed in the future, and the Netherlands will continue to have a well-functioning gas market.

GTS’ recommendations to the Ministry for Economic Affairs and Climate Policy also include a look ahead to the required production level from the Groningen field to ensure security of supply over the coming years. This shows that the rate at which production from the Groningen field can be wound down depends on when the Zuidbroek II nitrogen installation becomes operational and on progress made in reducing gas exports. While building work on the Zuidbroek II nitrogen installation has suffered delays due to the COVID-19 pandemic, there is a still a realistic chance that it will be put into operation in April 2022. The expectation now is that the Groningen field can be closed over the period from mid-2025 to mid-2028.

GTS has also looked into the impact of converting the Grijpskerk gas storage facility from high-calorific to low-calorific gas. The initial results show that converting the Grijpskerk gas storage facility to L-gas will bring closure of the Groningen field forward by approximately two years. Given that the studies by NAM and GTS have not yet been completed, it is not possible at this point to put a figure on the required additional Groningen volume. Over the coming months, a decision will have to be made about the next steps, so as to be able to get started with this measure in due time.

To help formulate our recommendations, GTS arranged a market consultation to allow the market parties and various representative organisations to give their views on the planning assumptions/principles used and the proposed actions. This market consultation ran from 20 November to 10 December 2020. On 25 November 2020, we organised a workshop in which we explained the actions and assumptions. We would like to take this opportunity to thank the various parties for submitting their consultation responses. GTS has included these in the final recommendation document.

Please find below our recommendations that we have sent to the Minister for Economic Affairs and Climate Policy, as well as a comment and response matrix with comments from the various parties who took part in the market consultation and our responses explaining what we have done or will be doing with regard to the matters raised.