North Sea Jackdaw gas field decision expected imminently

A decision on the Jackdaw gas field in the North Sea is expected imminently.

STV News understands the UK Government will make an announcement on Wednesday morning.

The controversial project, 150 miles east of Aberdeen and owned by Adura, has faced opposition from environmental groups but support from industry and opposition parties.

It is one of two North Sea developments initially approved by the previous Conservative administration before the courts ruled the full environmental impacts of the fossil fuels drilled should be taken into account.

Labour had promised a ban on new drilling in the North Sea in its 2024 election manifesto, but new Prime Minister Andy Burnham vowed to take a “pragmatic” approach.

On Wednesday, his government is expected to announce whether Jackdaw will go ahead or not.

Information submitted on behalf of the project said that at peak production, Jackdaw is expected to contribute around 6.5% of UK Continental Shelf gas production, which would produce enough energy to heat more than 1.4 million homes.

A decision on Rosebank, the largest untapped oil field in the North Sea, is to take “a bit longer”.

The oil and gas industry, Tories and Reform have been calling for both fields to be given the go-ahead to boost energy security and economic growth, but environmentalists and analysts have been warning they will harm climate action, do nothing to bring down bills, and that security is better served with renewables.

Scotland’s First Minister John Swinney has changed his party’s stance on the North Sea developments. His predecessors Nicola Sturgeon and Humza Yousaf both opposed the new drilling projects.

But Swinney has taken a far softer approach, telling STV News that Jackdaw and Rosebank had to be assessed on whether they would deliver higher or lower carbon emissions compared with importing oil and gas from abroad.

‘Severe grid strain’

It comes as the UK faces numerous challenges with the energy transition, including balancing supply from intermittent renewable sources, affordability with gas prices frequently setting electricity prices, and growing demand for connecting new sources and users to the network.

In June, the electricity grid operator National Energy System Operator (NESO) faced challenges managing severe grid strain during extreme heat, with high temperatures causing a drop in renewable energy efficiency and demand surging because of factors such as increased air conditioning use.

Answering questions at Energy UK’s conference, Fintan Slye, Neso’s chief executive, said there will be “lessons to be learned” coming out of a review into that period that regulator Ofgem is currently undertaking.

Asked how he thought Neso handled the situation, Mr Slye said: “Through that period, no customers were disconnected (and) frequencies stayed within statutory limits.

“But undoubtedly, it was a really challenging period for the system, and right across Europe we saw power systems … under strain.

“I think the control room and teams that were in it did an absolutely superb job managing what was a really difficult situation through the week.”