Gas cuts could cost €2 billion: Finance Min.

The reduction in gas extraction in Groningen as well as the low gas price will result in 1.5 to 2 billion euros less for the Dutch treasury this year. This is according to Minister Jeroen Dijsselbloem (Finance, PvdA) who discussed the matter on the talk show Pauw last night.

Dijsselbloem can not give an exact estimation on how much the gas revenues will decline as it is in part dependent on the gas price, NRC reports. It is also possible that the gas revenues will decrease even further if the Cabinet decides to further reduce the gas extraction in Groningen after July 1st.

According to the minister, the setbacks caused by the reduction in gas extraction will not cause a problem for the budget. The shortfalls can be absorbed because of the "super fast" government deficit decline, he said, which creates "a lot of financial room".

The Cabinet has restricted gas extraction in Groningen to 16.5 billion cubic meters for the first half of this year. The gas extraction for the entire year has also been reduced from 43.5 billion cubic meters to 39.4 billion cubic meters. The Cabinet will decide whether or not to further reduce gas extraction in the second half of the based on the results of a study being conducted by the State Supervision of Mines. This decision will only be made in July.

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