Netherlands to further reduce gas output

The Dutch government is working on plans to reduce gas production by an additional 10 percent, government sources said on Tuesday.

Citing a letter from outgoing Economic Affairs Minister Henk Kamp, the Telegraaf newspaper said output will be reduced to 21.6 bcm (726.7 bcf) per year from October 1 onwards in an effort to further reduce the risk of production-related tremors in the gas-rich northern province of Groningen.

Tremors and minor earthquakes have been a regular occurrence since 1986, causing damage to homes and businesses. Following a magnitude 3.6 tremor in 2012, Shell-ExxonMobil joint venture NAM was ordered to pay for material damage.

The Dutch government in 2015 decided to fix annual production at 24 bcm (847 bcf) for a period of five years to help lessen the impact of tremors.

A major gas producer, yearly output from the Groningen field peaked in 1975 at 87.5 bcm (3.1 tcm). In 2012, when production cuts were mulled, output was at a 20-year high of 52.9 bcm (1.8 tcf).