The Dutch Senate approved a law Tuesday to permanently close the Groningen gas field, removing the final obstacle to a shutdown, after the government promised it would never resume production in order to limit seismic risks in the region.
Mines minister Hans Vijlbrief said the gas taps could be switched off as early as May 1, sooner than the originally planned October 1 date.
The Groningen field, once one of Europe’s top gas suppliers, was suspended but left on standby mode last October in case a cold winter led to shortages; Vijlbrief ordered limited production during a cold snap in January.
The Dutch Senate had unexpectedly postponed a final vote on the law, as several factions said they needed more guarantees on the country’s supply security, but the decision sparked outrage in the Groningen area, where local officials accused parliament of backtracking on its promise to end gas drilling, which has triggered more than 1,600 tremors in the last 40 years.
Shell (NYSE:SHEL) and Exxon Mobil (XOM), whose NAM joint venture operates the field, have asked an arbitration court to decide whether they should be compensated for the ending of gas production at Groningen, which still contains huge reserves.
