Britain switches on a new North Sea gas field this month

Energy Secretary Miatta Fahnbulleh has cleared the Jackdaw gas field to supply British homes from the end of October.

The Department for Energy Security and Net Zero said Fahnbulleh agreed on Wednesday (21 October) that the North Sea Transition Authority can grant consent for production at the already-licensed field.

Developer Adura estimates the project will create 27 new direct jobs, safeguard 273 existing ones and add around £2.9 billion to the UK economy.

The department expects Jackdaw to lift domestic gas production by around 6% at its peak, over a lifespan of up to 11 years. Over its lifetime, the field should produce gas with an energy equivalent of around 40 million barrels of oil.

Britain sources 42% of its gas from the UK continental shelf, 37% from Norway, 20% from liquefied natural gas imports and 1% through interconnectors, based on a five-year average from 2021 to 2025.

“This decision will support the country’s energy security with homegrown gas this winter and help minimise the UK’s use of imported higher emission fuels as we continue our transition to renewables and nuclear,” said Fahnbulleh.

“I welcome the Energy Secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter,” said Prime Minister Andy Burnham.

Climate test for North Sea projects

A 2024 Supreme Court ruling in the Finch case requires North Sea operators to account for the emissions from burning extracted oil and gas in their environmental impact assessments.

Fahnbulleh concluded that Jackdaw will not stop the UK from meeting its legally binding carbon limits or reaching net zero by 2050.

The government has kept its manifesto pledge not to issue new licences to explore new fields.

A licence gives a company exclusive rights over an area, but each project still needs separate consent before work can go ahead.

£2 billion fund for renewables

Chancellor John Healey also announced a new Energy Wealth Fund, which will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects.

The fund starts with £2 billion, and future North Sea revenues will flow into it over time.

The government said this investment will substantially delink gas and electricity prices by the end of this Parliament, so that gas sets the price of electricity less often.

“Through our new Energy Wealth Fund, we will invest in the clean energy industries of the future, creating jobs, driving growth and strengthening Britain’s energy security,” said Healey.

The government has also asked the regulator to consider urgent cases for oil and gas production near licensed fields before legislation on new Transitional Energy Certificates comes into force.

It has asked Shell to submit its decommissioning programme for the Brent field, a decision that has sat under review since 2017.

Independent analysis from Redwater Insights estimates the UK decommissioning sector could support up to 25,000 skilled jobs and attract up to £25.6 billion in investment over the next decade.

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