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UPDATE 1-Dutch parliament orders annual check on Groningen gas production

Thu, 15th Sep 2016 15:51

(Updates with details, background)

AMSTERDAM, Sept 15 (Reuters) - The Dutch parliament adopteda motion on Thursday ordering the government to evaluate everyyear whether gas production at the country's Groningen field canbe reduced further.

Output from Groningen, Europe's largest gas field, hashalved over the past two years after the country's Safety Boardsaid the government was failing to protect citizens fromearthquakes triggered by gas exploitation.

In June, the government capped production at 24 billioncubic meters (bcm) annually for the coming five years but themotion adopted Thursday opens the door to further reductions.

The Groningen gas field is operated by NAM, a joint venturebetween Royal Dutch Shell and Exxon Mobil Corp.

In June, Economics Minister Henk Kamp cited expert advicethat 24 bcm was the minimum that could be produced at Groningenwhile still guaranteeing customers at home and abroad would haveenough gas to heat homes in the winter.

But he reversed that judgment on Tuesday, saying in a letterto parliament that German customers had signalled they wouldreduce their dependence on Dutch gas ahead of schedule and findother sources.

That raises the possibility gas output from Groningen couldbe lowered in the coming years without causing supply problems.

Although Kamp had opposed the motion to impose annualchecks, it passed with the support of opposition parties and thegovernment's junior coalition member Labour. (Reporting by Toby Sterling; editing by David Clarke)

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