Nam calls for Groningen gas field closure in 2022

31 JULY 2020

The Netherlands’ Groningen low-calorie gas field could be closed completely in 2022, while keeping it on stand-by afterwards would require substantial production to be maintained, operator Nam has said.

There will be “no role for Groningen after 2022” as it is highly unlikely that it would be needed to guarantee security of supply then, Nam said in response to a consultation on the field’s draft output plan for the 2020-21 gas year.

The Dutch economy ministry’s plan foresees that Groningen output would halt from about mid-2022 when a new quality conversion facility in Zuidbroek is expected to become operational, significantly increasing the scope to convert high-calorie gas into low-calorie supply. The field is to remain on stand-by afterwards until at least about mid-2025 to serve as a back-up that could help meet northwest European low-calorie demand in situations of exceptionally strong consumption or disruptions to other sources of supply. read more

Energy venture NAM says it does not want to use Groningen gas field in 2022

AMSTERDAM, July 30 (Reuters) – NAM, a venture of Royal Dutch Shell and ExxonMobil that operates gas fields in the Netherlands, said on Thursday it did not want to use the Groningen gas field in 2022 and had asked the government to approve this.

The government, which has been ordering production cuts at the field due to seismic risks in the region, had asked NAM to keep the field available as a resource in 2022 in case of a cold snap, NAM said, adding that it was opposing this request. read more

The third small earthquake in a week struck the province of Groningen early Sunday morning. The quake registered a magnitude of 2.3, and its epicenter was in Startenhuizen, meteorological agency KNMI said.

It struck seconds before 4:08 a.m., and was followed by an aftershock registering 0.9 about four minutes later, data from the agency showed. The earthquake was determined to be induced by human activity, a fairly common occurrence in the region due to decades of natural gas extraction. read more

Translation of an FD article published today

How Shell disappeared from politics in The Hague

Shell CEO Van Beurden recently hinted at a possible departure of the multinational from the Netherlands. A signal that, according to those involved, can also be interpreted as an ultimate rapprochement attempt. Because the dialogue between politicians and Shell is at a dead end.

Ulko Jonker

In brief

• Shell is considering leaving the Netherlands, partly because of the dividend tax that did not disappear.
• GroenLinks now wants to impose a moving fine on companies that go abroad.
• The multinational is said to have fallen into political isolation because of gas extraction in Groningen.

Jesse Klaver took the doctrine of debt and fine to a new level last week. The GroenLinks captain believes that Unilever and Shell should first ‘settle with Dutch society’ before they can move their headquarters. GroenLinks MP Bart Snels himself calls his initiative ‘Brutal’. It is also ominous, companies say. read more

There was an earthquake in Loppersum in Groningen on Tuesday afternoon. The quake measured 2.7 on the Richter scale, making it the strongest earthquake to hit the province so far this year. The municipality of Loppersum called residents to report damage to the Groningen Mining Damage Institute.

The earthquake happened at around 5:15 p.m., according to meteorological institute KNMI. People reported feeling the quake in Loppersum, the city of Groningen, Leermens, Middelstum and Zeerijp, according to RTV Nooord. Before Wednesday, the strongest earthquake of the year measured 2.5 at Zijldijk on May 2. The strongest earthquake ever to hit Groningen was in Huizinge in 2012 and measured 3.6, according to NOS. read more

Dutch gas production at Groningen set to drop to 9.3 bcm next year

AMSTERDAM, June 19 (Reuters) – Gas production at the vast Groningen field in the Netherlands is set to drop to 9.3 billion cubic metres (bcm) in the year through October 2021, the Dutch gas sector regulator said on Friday.

Production at the field, operated by a joint venture of Royal Dutch Shell and Exxon Mobil, is capped at 11.8 bcm for the year ending October 2020, although the government has said that level will probably not be reached. read more

120,000 home owners in Groningen to get compensation for quake property value cut

(Information added by John Donovan: NAM is the Shell/Exxon Joint Venture company responsible along with the Dutch government for the earthquake blighted Groningen Gas Field and the consequential bill for dealing with 120,000 damaged residences.)

May 27, 2020

Some 120,000 home owners in Groningen province are entitled to financial compensation because the value of their property has gone down due to the earthquakes, the institute set up to assess the damage says. read more

English translation of an article published 23 Feb 2020 by the Dutch Financial Times (FD)

Dutch industry funded climate skeptic Frits Böttcher

From our editor

According to FTM, Shell is one of the companies that Böttcher financed. Photo: ANP

In brief

• Climate skeptic Frits Böttcher received at least one million guilders fom the Dutch business community in the 1990s.
• At the request of donors, he wrote activist papers in which he denied the existence of the greenhouse effect.
• Partly due to his work, there was little support for sustainable climate policy at the end of the last decade.

Between 1989 and 1998, Frits Böttcher received at least one million guilders (€ 450,000) from 24 Dutch companies, including Shell, NAM, AkzoNobel and DSM. With that money he set up an international network of climate skeptics. At the request of the donors, he also wrote activist papers and articles in which he denied the existence of the greenhouse effect. This is the result of research by Follow the Money (FTM) and the Authentic Journalism Platform (PAJ), who have access to the personal archive of Böttcher, who died in 2008. read more

NAM gas production at Groningen, Europes largest gas field, will end in 2022

The Ministry of Economic Affairs ignored signals and reports that there were many problems with Centrum Veilig Wonen (CVW) – the company responsible for reinforcing homes in Groningen against fracking earthquakes – for years. The then National Coordinator for Groningen Hans Alders warned the Ministry that the company was not complying with agreements, and that Groningen residents were the victims of this, in the summer of 2017. But the Ministry claims that it only became aware of the problems in May 2019, RTV Noord reports based on an email exchange between Alders and the Ministry, and statements from Minister Eric Wiebes and his Ministry. read more

Natural gas output at Europe’s largest onshore gas field, the Netherlands’ Groningen, continued to fall sharply in December following the Dutch government’s tightening of the production quota, with volumes down 43% year on year.

The rapidly declining output at the field has eaten away at Dutch gas stocks, which have now fallen below Gas Year 2018 levels and are well below the European average.

A production cap has been put in place to prevent earthquakes linked to gas extraction at Groningen and the Dutch government plans to phase out gas extraction at the field completely by mid-2022. read more

Below is a translation of a news brief issued today 7 Nov 2019 – by NAM, the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field. And also for the consequential potential bill for untold billions to deal with damaged residences like the example in the photograph. Someone forget to mention in the news brief the shocking reason why the Dutch government ordered the closure. The word “earthquake” does not appear anywhere.

TRANSLATION

Close gas field Groningen started in Ten Post

It seems only a signature, but it marks the start of the closure of the Groningen field. At the end of October, NAM transferred the Ten Post gas extraction site to Meuva.  This company will start cleaning up the location around 11 November. read more

GRONINGEN, the Netherlands — Driving through fields of low-lying Dutch farmland you pass an occasional odd cluster of silvery pipes and tanks. They are the only visible sign that deep below this northeast corner of the Netherlands is one of the world’s largest natural gas fields.

Unless you stop by one of the nearby farmhouses weakened by earthquakes linked to gas extraction. At her handsome home in the village of Appingedam, Nicole van Eijkern pointed to sagging external walls and cracked ceilings. Heavy beams buttress her house, inside and out, and it is scheduled to be torn down. read more

The anger among Groningers was great after two earthquakes last spring. It fueled the fear of new cracks and subsidence, while in some cases the old damage was not even repaired by the syrupy claim settlement and reinforcement operation.

Printed below is an English translation of an article published 10 Sept 2019 by the Dutch FT, Financieele Dagblad. NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

Saying goodbye to Groningen gas much faster than expected

Bas Knoop In short

The cabinet wants to stop gas extraction in Groningen much faster than planned. Not in 2030, but already in 2022.

Next year gas extraction will fall to 11.8 billion cubic meters, just below the ‘safe’ level of 12 billion cubic meters.

In order to accelerate the gas extraction, nitrogen is added to imported high-calorific gas. Nine large industrial users are no longer allowed to use Groningen gas from October 2022.

Due to the lower gas extraction, the natural gas revenues for the cabinet will fall by €400 million next year. A new gas deal with Shell and ExxonMobil is being prepared. read more

Bart H. Meijer: SEPTEMBER 10, 2019

* Gas production at Groningen field to end by 2022

* To end 8 years earlier than initially planned

* Groningen production capped at 11.8 bcm in 2019/2020

* To be kept operational until 2026 at latest in case of exceptional demand (Adds detail)

By Bart H. Meij

er

AMSTERDAM, Sept 10 (Reuters) – The Netherlands will halt production at Groningen, Europe’s largest onshore natural gas field, by 2022, eight years earlier than initially planned, the Dutch government said on Tuesday. read more