Attention is set to move to the Rosebank oil and gas field after Prime Minister Andy Burnham defended the decision to approve Jackdaw.
Gas from the Jackdaw field will start flowing within weeks after Energy Security and Net Zero Secretary Miatta Fahnbulleh backed the scheme.
She has been urged to now back Rosebank, the largest untapped oil field in the North Sea, as a further sign of commitment to production.
Approving Jackdaw has been sharply criticised by environmental campaigners who want to accelerate the shift away from fossil fuels.
But ministers argue that while UK households and businesses are still using gas, it makes more economic and environmental sense to increase domestic production rather than rely on imports shipped around the world.
Mr Burnham said the decision would “protect hundreds of jobs and help keep millions of homes warm this winter”.
He added: “At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.”
Mr Burnham said the Government was taking a “pragmatic approach” to the North Sea but remained “committed to moving towards renewable energy” and reaching net zero emissions by 2050.
The approval of Jackdaw is expected to increase domestic gas production by around 6% at its peak, safeguard hundreds of jobs and provide an estimated £2.9 billion economic boost.
(PA Graphics)
PA Graphics
Tax revenues from North Sea oil and gas will also be funnelled into a new energy wealth fund, backed with an initial £2 billion, which will be used to invest in renewable and low carbon projects.
Gas from Jackdaw, around 150 miles east of Aberdeen, will start to supply homes and businesses from the end of the month after Ms Fahnbulleh agreed that regulator the North Sea Transition Authority could approve the scheme.
US President Donald Trump, who has called for greater drilling, said the UK should now go “full blast” in exploiting North Sea resources.
Neil McCulloch at Shell UK’s St Fergus Gas Terminal in Peterhead, Aberdeenshire (paul Reid/PA)
PA Wire
The chief executive of Adura, the joint venture between Shell and Norway’s Equinor which is behind both schemes, called for Rosebank to also be approved.
Adura boss Neil McCulloch said: “Jackdaw represents a significant prize in its own right: £2.1 billion of investment and enough gas to heat the equivalent of around 1.4 million UK homes at peak production.
“Our attention now turns to Rosebank.
“It follows Jackdaw in the regulatory process, but the case for approval is equally strong.
“We believe that applying the same rigorous, evidence-based approach can lead to a similarly positive decision.”