Netherlands lowers Groningen output further

The government has cut production to curb damage to the region's buildings

The Dutch government has further cut production from the giant Groningen gas field in order to limit damage to the buildings in the region, leaving the country even shorter of peak gas supply this winter. In early July it set a cap of 30bn cm on this year’s production from the giant, flexible Groningen gas field, meaning that the operator NAM may produce just 13.5bn cm in the second half of the year. Gas marketer GasTerra may need to import more gas to meet domestic demand and export commitments. GasTerra, which is owned 25% each by the majors ExxonMobil and Shell – who are also the 50-50 shareholders in NAM – and 50% by the Dutch state, has exclusive rights to market Groningen gas. The cut