Netherlands considers earlier Groningen closure

Dutch transmission system operator Gasunie Transport Services has told the Dutch minister of economic affairs that the former swing gas producing field, Groningen, may be closed as early as 2023. "This is more than three years ahead of schedule," it said, in its letter to the Dutch parliament June 25.

The goal is to stop gas extraction in Groningen by 2022. But it was expected to remain on standby for several years to supply gas in extra cold periods and/or in case of severe outages.

However, owing to "the accelerated conversion in Belgium of the end consumers and the possible conversion of the Grijpskerk gas store from high- to low-calorific gas (the same type as Groningen gas), the final closure of the Groningen field can be realised sooner than planned," it said.

Gasunie's reference only to "extra cold periods and cases of severe outages" suggests that the wholesale gas price is not a factor on its own, although gas prices last week at the Dutch Title Transfer Facility were above €31/MWh all the way from this week until the end of Q1 2022. Traders fear inadequate storage inventory by the start of the coming heating season and the influence of Asian demand on Dutch gas prices is felt more keenly than ever.