The UK Government has approved plans for gas production at the Jackdaw field in the North Sea, with Energy Secretary Miatta Fahnbulleh authorising the regulator to grant consent for the project.
Gas from Jackdaw is expected to supply British homes and businesses from the end of this month.
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Government estimates state that the field could increase domestic gas production by approximately 6% at its peak, support supply over an 11-year operational span and add approximately $3.8bn (£2.9bn) to the UK economy, while protecting hundreds of jobs.
In addition to the Jackdaw decision, the Chancellor of the Exchequer, John Healey, has announced the creation of a new Energy Wealth Fund.
The fund will launch with a £2bn down payment and reinvest tax revenues from North Sea oil and gas into renewable and low-carbon energy projects.
Future oil and gas revenues will also be channelled into this fund, which is designed to support the green transition.
The move follows global energy price increases linked to instability in the Middle East.
In authorising Jackdaw, the Energy Secretary considered the Supreme Court’s Finch case ruling from 2024, which requires that environmental impact assessments for North Sea projects address the impact of burning extracted oil and gas.
The government said the project would not prevent the UK from meeting its legally binding carbon emissions targets or reaching net zero by 2050.
Fahnbulleh said: “Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.
“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.”
Jackdaw already holds a production licence. Now that the consent has been granted by the North Sea Transition Authority, the developer, Adura, expects operations to begin imminently.
Adura is a joint venture between energy giant Shell and Norway’s state-owned oil company Equinor.
The project is estimated to produce gas equivalent to approximately 40 million barrels (mbbl) of oil over its lifespan, create 27 new direct jobs and safeguard a further 273 positions.
The government is also reviewing further measures to support the North Sea oil and gas sector, including new guidance on decommissioning infrastructure and the introduction of Transitional Energy Certificates.
These certificates are designed to allow additional production near licensed fields while preventing exploration in new unlicensed areas.
Official figures show that 42% of UK gas currently comes from the UK Continental Shelf, with the remainder sourced from Norway, liquefied natural gas and interconnectors.
