NAM investing substantially in the Northern Netherlands

The Nederlandse Aardolie Maatschappij (NAM) in Assen will in the years to come be investing hundreds of millions of euros in three projects in Drenthe and Groningen.

The Nederlandse Aardolie Maatschappij (NAM) in Assen will in the years to come be investing hundreds of millions of euros in three projects in Drenthe and Groningen. The money will be used to lay the transport pipeline between Sappemeer and Langelo, build extra compressors at the Groningen field and extend the capacity of the underground gas storages in Grijpskerk and Langelo. NAM was not yet able to confirm the precise amount being invested in the projects.

The work is being planned in response to the depletion of the Groningen field. Of the 2800 billion cubic metres of gas, 1700 billion have now been extracted. Not only is there now less gas available: the pressure has diminished too. Extra measures are needed to get the gas out. Since 1995 the NAM has invested 2 billion euros on creating extra compression at the field. This Groningen Long Therm project is due for completion next year.

The new transport pipeline is needed because gas will be produced 24 hours a day in Groningen in the future, regardless of the demand. If there is no demand, the gas has to be stored in Langelo. It will probably be possible to continue to produce gas in Groningen for another fifty years.

Source: Dagblad van het Noorden, 11 March 2009, 17 maart 2009