Make UK has welcomed the Government’s decision to grant a licence for the Jackdaw North Sea gas field to begin operation.
Chief Executive Stephen Phipson CBE said: “Yesterday after meeting the Chancellor, I said the Government needs to start making tough decisions. This is a very good start. As we have previously said, approving the licensing of Jackdaw will boost the UK’s energy security and support manufacturers through volatile times. It will provide some much-needed certainty as we enter a challenging winter. That’s why we also support the Government progressing Rosebank.
“We are also pleased with the creation of the new Energy Wealth Fund. This should be used to accelerate the transition to electrification and bring down energy costs in the long term.
“All of this is a step in the right direction. But what our members really need is for the Chancellor to permanently reduce energy costs by removing policy levies from energy bills.
“If the Government is serious about reindustrialisation, then that needs to be the absolute priority at the Budget.”
Jackdaw will start to supply gas to British homes and businesses from the end of this month, after the Energy Secretary agreed that the regulator can grant consent for gas to be produced at the field.
The Jackdaw decision is expected to increase domestic gas production by around 6% at its peak – supporting the UK’s gas supply over its lifespan of up to 11 years, boosting UK energy security, protecting hundreds of jobs and adding an estimated £2.9 billion to the economy.
Energy Secretary Miatta 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.”
“The decision is compatible with our legally binding climate commitments, and we remain resolute in ending new licences for oil and gas and achieving net zero by 2050.”
The decision comes as welcome news for those companies in the oil and gas supply chain.
Stuart Payne, chief executive of the
North Sea Transition Authority (NSTA) said: “This project will support the UK’s energy security by providing domestically produced gas, generate tax revenues, safeguard supply chain jobs, use existing infrastructure, and have an emissions intensity well below the UK average.”