GasTerra's operations to be gradually phased out over the next few years

GasTerra's operations to be gradually phased out over the next few years

GasTerra, the sales office for Groningen gas, is to be gradually phased out over the next few years. Stopping gas production in Groningen means GasTerra's core activity will no longer exist in the long-term.

The joint shareholders have therefore asked GasTerra's management team to prepare a plan which ensures that operations are phased out gradually with the company continuing to fulfil its obligations.

This is contained in a letter sent by the Minister for Economic Affairs and Climate, Eric Wiebes, to the Dutch Second Chamber. GasTerra's employees have been informed of the decision today. The phasing-out plan seeks to ensure that GasTerra can, in the coming period, continue to contribute towards a responsible reduction in gas production from the Groningen field and also fulfil its long-term obligations. A redundancy scheme will be set up for the company's employees, numbering around 165.

GasTerra plays a pivotal role in the Dutch gas supply and gas market. Although GasTerra is entering a time during which it will be scaling back operations, it will do its utmost to ensure its core tasks are performed properly. The company's contractual obligations will be fulfilled. GasTerra will also continue, for the time being, all its social, cultural and energy-transition-related activities in the town and province of Groningen.

GasTerra's CEO, Annie Krist, emphasises the historical significance of the shareholders' decision. “GasTerra's history goes right back to when gas production started in Groningen, in the early 1960s. Our company's activities have now reached their final stage but they will be just as essential in the years to come as they were in the past. We now have our most important task of defining the planned phase-out responsibly, taking the interests of our staff members and all other stakeholders into account.”

About GasTerra

GasTerra is an international gas trading company dealing in natural gas and green gas. The company is a public-private cooperation between the Ministry of Economic Affairs and Climate (10% of the shares), state-owned company EBN (40%) and energy companies Shell and ExxonMobil (each holding 25%). GasTerra provides services to significant sections of the Dutch and European gas market.

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