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UPDATE 1-Groningen gas output can be cut by more than 50%, government says

Thu, 11th Feb 2021 08:41

* Output set at 8.1 bcm this year

* Last year production set from Oct 2021
(Adds detail, background)

AMSTERDAM, Feb 11 (Reuters) - Gas production at the
Netherlands' Groningen natural gas field can be cut to 3.9
billion cubic metres (bcm) in the year from October 2021, which
is set to be its final year of regular extraction, the
government said on Thursday.

A main supply of gas for Europe for decades, Groningen's
output hit a peak of 88 bcm in 1976 but a series of tremors
caused by work there have damaged local buildings and prompted
plans to end production.

The Dutch state in 2019 announced output at Groningen would
end by mid-2022 to limit seismic risks in the region, with gas
only to be extracted thereafter in the event of extreme weather
conditions, for which a few sites will remain on stand-by.

Production is expected to fall to 8.1 bcm in the year
through October 2021, the government said, with a recent cold
spell not changing that outlook.

The government will take a final decision on 2021/2022
production by September.

Discovered in 1959, the Groningen field is run by Royal
Dutch Shell and ExxonMobil joint venture NAM.
(Reporting by Bart Meijer; editing by David Goodman and Jason
Neely)

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