Dutch Groningen natural gas field production climbs to 1.8 Bcm in August: NAM

London (Platts)--12 Sep 2017 736 am EDT/1136 GMT

Natural gas production at the giant Groningen gas field in the Netherlands rose to a four-month high in August, but remained comfortably lower on an annual basis, data from operator NAM showed.

  • Up 4% from July, down 16% from August 2016
  • Hits four-month high in August
  • 24 Bcm quota leaves 1.64 Bcm for September

Production at the L-cal field rose 4% month on month to 1.8 Bcm in August, the highest extraction level since the 2.12 Bcm from April, but was still lower than the 2.15 Bcm recorded during August 2016.

With the 24 Bcm quota firmly in place for the Gas Year 2016-17 (October 1, 2016, to September 30, 2017) and 22.36 Bcm having been produced so far, this leaves NAM with a maximum of 1.64 Bcm able to be produced this month at an average of about 55 million cu m/d.

If the quota is hit, this would represent a 9% fall from August and a 16% drop on an annual basis.

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Production within the Zuidwest area (910 million cu m) moved above production from the Oost area (855 million cu m) for the first time so far this decade.

In 2016, production in the Oost area totaled 18.247 Bcm against the 7.441 Bcm from the Zuidwest area.

Elsewhere, the Loppersum area -- which has seen the largest decline in production since the quotas were introduced in 2014 -- produced 33 million cu m in August, with no extraction seen from the Eemskanall area for a second straight month.

Natural gas production at Groningen can be expected to continue to fall year on year during GY 2017-18, with the Dutch government having imposed a 21.4 Bcm quota for the period.

--Gary Hornby,
--Edited by Jonathan Fox,

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