At least one of the Dutch political parties calling for lower Groningen production could become part of a new coalition government following last week's second chamber elections, according to a report from Argus Media.
A number of parties have called for a cut in Groningen production from the current plan, which limits output to 24 bcm/yr, although additional offtake of up to 6 bcm could be allowed in a cold gas year.
Groningen is Europe’s biggest gas-field, and produced as much as 52 bcm as recently as 2013, before earth tremors led to the cuts – which removed much of the continent’s domestic swing capacity. More LNG and lower demand have offset the impact of the reduced flexible supply.
But Argus notes that any further reduction in Groningen output could be difficult, while still guaranteeing security of low-calorie supply in northwest Europe – which is mostly used for heating.
The Green Party, which made the biggest gains in the elections, called for a reduction of the Groningen cap to a maximum of 21 bcm/yr in its election programme. And it had previously urged for production to be lowered to 18 bcm/yr from next year and to just 12 bcm/yr by 2021.
The Christian Union is calling for a reduction of the output cap to 21 bcmyr in 2018 and for it to then be reduced annually. It also proposes a reduction in low-calorie exports and an expansion in conversion capacity from high-calorie supply to low-calorie gas. Other parties have also called for further cuts.
As well as constraining regional heating, any further cuts could tighten seasonal markets in the area and make generators and other big users more reliant on winter storage.