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07 Mar 2024

Dutch Lawmakers Indicate Support to Permanently Shutter Groningen Gas Wells

07 Mar 2024  by reuters   
A majority in the Dutch parliament said on Wednesday they would back a proposal to permanently seal off gas production wells at the Dutch Groningen field in a vote scheduled for March 12.

Gas production at Groningen, once one of Europe's largest gas fields, was ended in October last year after years of production cuts to limit seismic risks in the region.

The Groningen field is operated by Shell (SHEL.L), opens new tab and Exxon Mobil (XOM.N), opens new tab joint venture NAM.

Both companies have asked an arbitration court to decide whether the Dutch state should compensate them for ending gas production at the field, which still holds massive reserves.

The gas field has been available for limited production during a cold snap in recent months, but the government has proposed a law that would close the field entirely by Oct. 1.

During a debate on Wednesday, large majority in parliament indicated they backed the law, with a group of parties even proposing to move the closure date forward.

Mining minister Hans Vijlbrief said he was open to that suggestion, if the law passed both houses of parliament in time.

The Lower House will vote on the law on March 12, with a vote in the Senate expected some time after.

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