Gas Storage Netherlands has submitted its view on the draft decision by the Minister of Economic Affairs on the production plan for the Groningen field.
As a result of the declining production of the Groningen field, GTS has indicated it will face constraints in the conversion of imported gas (high calorific value) into the quality specifications of Groningen gas during peak periods. Quality conversion is necessary, because gas installations of households and companies connected to the L-gas system in the Netherlands and neighbouring countries function within the quality specifications of Groningen gas. Imported gas, which has a higher calorific value, has to be converted into the lower calorific value of Groningen gas for safe use by households and others. This is done by mixing imported gas with nitrogen. In the Netherlands, GTS is responsible for quality conversion.
Gas Storage Netherlands has underlined that storage of Groningen gas for use in peak periods is a good alternative for investments in nitrogen installations for quality conversion. There are more economic benefits in using existing gas storages compared to investing in installations for quality conversion because the latter can only be used for a limited number of years. As demand for Groningen gas will decline because of the transition of household installations to high calorific gas, installation for quality conversion become useless while gas storages can also play a role in the security of supply after the transition to high calorific gas.
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