The Dutch government announced on Friday that gas production at the Groningen field in the Netherlands will cease by October 1st and production facilities will be permanently closed in 2024, but there will be a provision to extract limited amounts of gas in exceptional circumstances during the following year such as storage concerns over the winter.
Dutch energy imports by 2024 are expected to make up for the decrease in production from the Groningen field as Europe as whole increases its dependence on LNG.
The initial announcement was a big reason for the almost doubling of the Dutch TTF due to storage concerns , however, with the announcement that production may be restarted for storage purposes fears seem to have calmed slightly.
Eyes will be on international markets as the winter emerges and market players see if Europe can make it through the winter without another energy crisis.
Source: Gelber & Associates
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