The gas balance in the Netherlands is increasingly affected by the State Council's production cap at Groningen. This cap has been set on an annual or semi annual basis since 2015. In June 2016 the State Council ordered a cap of 24 bcm over the next six years with 6 bcma extra being allowed in a cold gas year. This ruling was applied to the 2016/2017 gas year. However in April 2017 the government announced a further reduction of 10 per cent in the Groningen production cap reducing allowed production to 21.6 bcm for the 2017/2018 gas year. The maximum output in an exceptionally cold winter has also been reduced to 27 bcm. Further reductions in production could be announced in future as the government reviews the impact of lower production targets.