Reuters: Dutch GasTerra Says It Must Buy Gas on Open Market

Dutch gas trader GasTerra said on Wednesday it will have to buy gas on the open market to meet its contractual obligations after the Netherlands government ordered a production cut at the massive Groningen field.

The decision is a sign the company believes the government output cap, which sent Western European gas prices soaring when it was announced on Feb. 9, is unlikely to be reversed.

Spokesman Anton Buijs said GasTerra, which purchases and sells Dutch-produced gas, had contracted to sell a little less than 40 billion cubic metres (bcm) from the Groningen field, Europe's largest, in 2015.

The government unexpectedly mandated an output cut to 16.5 bcm in the first half of 2015 due to concerns about earthquakes linked to production, although it left the door open to an increase in the second half.

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