Amid reports that UK government ministers are close to approving the Jackdaw gas field, a spokesperson for the Department for Energy Security and Net Zero (DESNZ) told ICIS that “the North Sea remains a vital national asset and oil and gas will continue to play an important role in our energy system for decades to come”.

The DESNZ did not comment on whether the controversial project was close to approval but added that any decision “will take into account all relevant evidence, including environmental assessments and public representations received during the consultation process”.

A public consultation on the future development of both Jackdaw and the Rosebank oil field concluded in August, leaving the final decision in the hands of Energy Secretary Miatta Fahnbulleh.

Energy Minister Kate White said on 3 September that the two projects would be assessed independently but did not provide a timeline for when determinations would be made.

ICIS has previously reported that Jackdaw, operated by Adura, a joint venture between energy giants Shell and Norway’s Equinor, could provide around 6 million cubic meters of gas into the British grid per day.

Regulatory barriers towards fossil fuel development in the UK have driven falling UKCS gas production in recent years.

A forecast decline in Britain domestic production could mean the country will need to source more supply from overseas in future, primarily Norwegian pipeline imports and global LNG.

This will increase the NBP hub’s exposure to LNG price dynamics, particularly in the winter months when Britain’s small storage capacity means the country relies primarily on incoming imported supply to meet heating demand.

Critics of the Jackdaw field’s opposition have noted that LNG imports often have a higher carbon intensity than domestic production.

Environmental charities brought cases against Jackdaw and Rosebank in 2022 and 2023 respectively after they were initially approved by the then-government.

The DESNZ spokesperson highlighted that the role of oil and gas in the UK energy system sits “alongside transitioning to clean power to protect jobs and tackle the climate crisis”.

Source: ICIS