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Dutch Senate delays Groningen gas field shutdown
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Dutch Senate delays Groningen gas field shutdown
Apr 3, 2024 4:28 AM

AMSTERDAM, April 3 (Reuters) - The Dutch Senate has

postponed a vote on a law to close permanently the Groningen gas

field, angering the government that has said production would

never resume because of the risk of earthquakes.

Normal gas production at Groningen in the north of the

Netherlands ended last October after years of output cuts to

limit seismic activity, linked to decades of extraction, that

has damaged thousands of buildings.

The gas field, once one of Europe's main suppliers, was

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.

Although backed by the Lower House of parliament last month,

several Senate factions on Tuesday said they needed more

guarantees that the law would not jeopardise the security of the

country's gas supply.

"This could delay the final decision by a year and a half,

which makes me angry," Hans Vijlbrief, mining state secretary,

told a parliamentary hearing on Wednesday.

Vijlbrief said he would resign unless the Senate changed its

mind quickly.

"Security of supply would only possibly be at risk in case

of two very cold winters in a row, a chance that is estimated at

1 in 80,000," Vijlbrief said. "I trust there is a

misunderstanding and that we will see a final Senate decision

soon."

Among those asking to postpone the vote were three of the

four parties that are trying to form a government, including the

nationalist PVV party that won the November 2023 election and

the centre right VVD of outgoing Prime Minister Mark Rutte.

Without the law, gas production could theoretically resume.

Lower House lawmakers on Wednesday said they feared a

considerable delay and ongoing uncertainty for people living in

the region.

Rutte's caretaker government, in charge until a new

government is formed, has repeatedly said it will not resume gas

production at Groningen under any circumstance.

VVD lawmaker Silvio Erkens on Wednesday also said the

decision to end gas production would not be reconsidered.

"But the Senate has the right to ask for more information,"

he added.

Shell and ExxonMobil ( XOM ), whose NAM joint

venture operates the field, have asked an arbitration court to

decide whether the Dutch state should compensate them for the

ending of gas production at Groningen, which still contains huge

reserves.

Gas profits have delivered an estimated 363 billion euros

($391.13 billion) to the Dutch treasury since production started

in the 1960s, while Shell and Exxon's profit from Groningen was

around 66 billion euros during that period.

($1 = 0.9281 euros)

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