Central government will pay NAM billions for the use of Norg gas storage

The State is going to pay gas and oil company NAM billions of euros for the use of the gas storage at Norg. That is the outcome of an arbitration case between the two parties, writes State Secretary Vijlbrief to the House of Representatives.

The storage is owned by NAM and is used by the State to be able to close the gas field in Groningen more quickly RTV North† The exact costs are calculated at the end of each year, but Vijlbrief expects that they can rise to a total of 7.5 billion euros in the coming years.

Diluted

The arbitration case arose from agreements made between the two parties to fill the gas storage facility at Norg from now on with foreign gas that has been diluted with nitrogen. It then resembles Groningen gas in terms of quality.

By filling the gas storage with that foreign gas instead of Groningen gas, 11.9 billion cubic meters less could be extracted from Groningen. This paved the way for closing the Groningen field years earlier.

Safety

Owner NAM previously used the storage to store Groningen gas and to sell it at a favorable time. Because Groningen gas can no longer be stored, that commercial component will disappear. In fact, NAM has to incur extra costs because it has to buy counterfeit Groningen gas to fill the storage.

The company and the government had already agreed that the government should pay a market price for this. Vijlbrief says that the outcome of the arbitration case has resulted in a high compensation, but is resigned to it. “The safety of the people of Groningen is paramount. A rapid closure of the Groningen field remains a high priority for the cabinet.”

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