Europe’s largest natural gas field is about to be closed! IEA: European countries will have a more difficult time next winter

Financial Associated Press 6 October (by Niu Zhanlin) Under the swamps of the Netherlands lies Europe’s largest natural gas reserve, considered by Europeans affected by the energy crisis as a source of hope in the context of the Russian-Ukrainian conflict . However, according to the latest developments, the increase in natural gas production in the Netherlands cannot be counted on.

The Groningen gas field in the Netherlands is reported to have sufficient untapped production capacity to close the natural gas gap caused by Russia’s supply cuts. But the Netherlands has turned down EU requests to increase production and is instead closing the Groningen field even as Europe prepares for what may be its hardest winter since World War II.

Since 1963 Groningen has been a mainstay of the European gas supply. Even half a century later, there are still around 450 billion cubic meters of recoverable natural gas reserves, which are worth around $ 1 trillion.

Furthermore, according to Shell, one of the two partners involved in the management of the project, Groningen could extract around 50 billion cubic meters more per year than it currently does. Shell estimates that the gas flow that could be boosted immediately would be enough to replace the 46 billion cubic meters of gas that Germany imported from Russia last year.

But the camp has been closed as Dutch officials are reluctant to risk backlash from residents as the drilling has triggered numerous earthquakes, causing huge economic losses to local residents and a serious security risk.

Locals say the continent needs to look elsewhere for gas. Because since 1986 Groningen has detected hundreds of earthquakes. At least 127,000 of the approximately 327,000 homes in the area have suffered some degree of damage, according to the data.

According to Dutch broadcaster NOS, more than 3,300 buildings have been demolished in the area since 2012 as earthquakes made them dangerous. Since 2014, the Dutch government has imposed increasingly stringent limits on the field’s production, with production dropping from 54 billion cubic meters in 2013 to an estimated 4.5 billion cubic meters this year.

Dutch officials said that if Germany needs more energy, the safest option is to further extend the life of its nuclear power plants. Dutch Prime Minister Rutte hasn’t completely ruled out the use of Groningen to increase supply, but only in extreme cases where everything goes wrong, saying there is no need to increase production, at least for now.

EU Internal Market Commissioner Thierry Breton said in a recent speech that the Netherlands should reconsider its decision to close Groningen. The Dutch government has also come under pressure from other EU countries, but the Netherlands is sticking to it. to the decision.

Shell spokesman Tim Kezer said Shell is working fully with the authorities to shut down the Groningen gas field as soon as possible and is fully aware of its responsibilities and will financially compensate local residents.

Germany did not ask for an increase in production

On Tuesday (4 October), German Chancellor Scholz met with visiting Dutch Prime Minister Rutte in Berlin. In a press conference after the talks, Scholz said current energy prices in Germany need to be lowered and called for unified action to combat speculation in the natural gas market. He stressed that energy security must be protected.

Scholz said the priority is to ensure energy security. In terms of energy supply, Germany has taken measures such as restarting coal-fired power plants, extending the use of nuclear energy and diversifying natural gas import sources, but energy prices need to be considered. to ensure energy accessibility. Therefore, Germany must accelerate the development of renewable energies.

Rutte said that Germany has not asked the Groningen gas field to increase production, we have pipelines from the Netherlands to Germany and these pipelines are fully used.

Rutte stressed that energy cooperation between the Netherlands and Germany has been particularly close in the past year and that the two sides will continue to collaborate deeply on the energy transition and energy security in the future.

In May, the Dutch government promised that Germany could obtain more LNG through LNG terminals in the Netherlands to make up for shortages in gas supplies from Russia.

IEA: European countries will have a more difficult time next winter

At the moment, although many European countries have indicated they have stored enough natural gas for the winter, International Energy Agency (IEA) Fatih Birol said Wednesday in a media interview in Helsinki, the capital of Finland, that Although the winter can be successfully overcome this year, if the situation Without change, European countries will have a more difficult time next winter.

Birol said that after a winter of gas consumption, European countries are expected to run out of gas reserves from 25% to 30% of their stocks by February-March 2023. At that point, if the supply of natural gas to Europe it will not yet be resolved effectively, the coming winter will be more difficult and European countries will have to face a more serious energy situation and will have to prepare as soon as possible.

“I want European countries to be more flexible and quicker in their response,” he told reporters. “This winter has been tough, but next winter could be even harder.”

On the same day, European Commission President von der Leyen pointed out that gas supply from Russia to the EU has dropped from 40% to 7.5% and that EU gas storage is currently 90%, compared to 75% in the same period last year.

Italy can face this winter with confidence, but there are still potential uncertainties related to the weather and unforeseen problems related to gas infrastructure, said the CEO of the Italian oil company Eni.