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Global Supply Chain Incident Tracker

Europe's Largest Gas Field Is Being Destroyed on Purpose, and It Cannot Be Undone

high active strategic dependency
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Published OnAugust 28, 2026
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LocationGroningen, Netherlands
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SupplierNederlandse Aardolie Maatschappij
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SectorNatural Gas Production
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Impacted ClientDutch households and industrial gas consumers
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Critical ComponentNatural gas production wells
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Financial Impact$2,300,000,000

The Netherlands is permanently destroying its own natural gas production capacity in Groningen at the same moment its winter storage sits at the lowest level ever recorded. State operator Nederlandse Aardolie Maatschappij is pulling roughly three kilometres of production tubing out of each well and replacing it with cement plugs, a procedure designed to make any future restart of what was once Europe's largest onshore gas field close to impossible. About 70 of the field's roughly 300 wells have been sealed since the programme began in 2019, and six of the 22 surface locations have been dismantled. The operator estimates the remaining work will take around ten years, cost close to 2 billion euros and employ some 200 workers.

The procedure is described by the Dutch mining regulator, Staatstoezicht op de Mijnen. Residual gas is first flared off. A metal plug is then set inside the well at the level of the salt layer directly above the reservoir. At least 50 metres of cement is poured on top, the seal is tested immediately and monitored for a minimum of three months, and further layers are then added for a total length of roughly 400 metres, topped with a column of saltwater. A specialised rig operated by contractor WellGear travels between locations to carry out the work. Undoing a completed well would mean drilling the cement out or sinking an entirely new borehole, and applying for fresh permits that take years to obtain.

The decision follows six decades of controversy. Production began in 1963 and yielded about 2.2 trillion cubic metres of gas, generating roughly 363 billion euros for the Dutch treasury. The reservoir is shallow and crossed by small faults, and extraction caused the ground to shift. Induced tremors started in 1986 and thousands of homes across the province were damaged. A parliamentary inquiry reported in February 2023 that the safety of Groningen residents had been structurally subordinated to financial interests and to security of supply, and framed the outcome as a debt of honour owed by the state. Production stopped in October 2023, the lower house approved the closure law on 12 March 2024, the senate followed on 16 April 2024, and the field was legally closed on 19 April 2024. Hans Vijlbrief, the minister responsible at the time, opted for full cement sealing rather than mothballing, against the advice of the Mining Council.

An estimated 500 to 550 billion cubic metres of gas remains underground, equivalent to roughly 18 years of Dutch consumption at current demand of about 30 billion cubic metres per year. Research institute TNO warned in February 2026 that sealing every well removes an emergency safeguard at a time when the Netherlands imports around 80 percent of its gas. TNO proposed treating the field as a strategic reserve, comparable to the oil stocks the country has held since the 1970s, rather than as a commercial asset. The operator responded in March 2026 that running production facilities with a purely strategic function is a task for the state and not for a commercial company.

The political dispute remains unresolved. Opposition party JA21 tabled an initiative bill on 5 March 2026 to legally guarantee that part of the field stays accessible for emergencies, and party leader Joost Eerdmans put the share of the 337 wells already sealed at roughly one quarter. The PVV backed the proposal, but there is still no majority in parliament. The government led by Rob Jetten has confirmed the closure in its coalition agreement and has ruled out keeping wells open. A survey published in April 2026 found that about 60 percent of Dutch respondents want part of the field kept available for emergencies. The mining regulator continues to warn that reopening the tap would not be safe.

Market conditions have moved sharply in the opposite direction since the decision was locked in. The conflict involving Iran that began in late February 2026 has left the Strait of Hormuz largely closed to commercial traffic. Iranian strikes on the Ras Laffan complex in Qatar on 19 March 2026 damaged the world's largest liquefied natural gas export hub and prompted QatarEnergy to declare force majeure. Qatari export volumes have collapsed and the reopening of the strait has repeatedly failed to materialise. Dutch TTF gas futures traded near 33 euros per megawatt hour in late February and were quoted between 65 and 69 euros in the final week of August 2026, close to five-month highs.

The storage picture is the most immediate concern. On 26 August 2026 Gasunie confirmed that the Netherlands will not reach its filling target of 115 terawatt hours for the coming winter, a volume equal to about half of annual national consumption. Dutch underground storage was roughly 45 percent full in late August, against 63 percent at the same point in 2025 and 94 percent in 2023. The EU minimum stands at 74 percent and the national goal was around 80 percent of capacity by 1 November. The main cause is commercial rather than physical, since high summer prices have made injecting gas into storage unprofitable for energy companies. Gasunie stressed that a normal winter can still be covered by Norwegian pipeline flows, LNG terminals and small domestic fields, and that the real exposure lies in a combination of a long cold spell with a pipeline or terminal outage.

Seismic activity has not stopped either. On 21 August 2026 at 05:50 CEST an induced earthquake of magnitude 2.8 struck near Zandeweer in the municipality of Het Hogeland, at a depth of three kilometres. It was the strongest tremor in the region so far this year and was felt in Uithuizen, Kantens, Rottum, Middelstum and surrounding villages. The national meteorological institute has recorded 20 tremors in the province in 2026 up to that date, compared with 37 in 2025 and 42 in 2024. The downward trend is real, but the risk has not reached zero, and government scientific advisers argue that filling the wells with cement does nothing to change the likelihood of further tremors because production had already ceased.

Europe's largest onshore gas reserve is being converted, well by well, into an asset that cannot be reached without a multi-year permitting and drilling programme. The work is continuing on schedule while Dutch storage sits at a record low, LNG flows from the Gulf remain disrupted and the price benchmark trades near its highest level since spring.

💡 Alternative Solution

Mothballing wells instead of permanent cement sealing, legally designated strategic gas reserve, increased Norwegian pipeline imports, expanded LNG regasification capacity at Rotterdam and Eemshaven, state-backed filling of underground storage, EU joint gas purchasing platform, accelerated build-out of wind, solar and nuclear baseload capacity

Published on August 28, 2026