UK government approves Jackdaw gas field in North Sea

(Sharecast News) - The UK government announced on Wednesday that it has approved the Jackdaw gas field in the North Sea. Jackdaw will start to supply gas to British homes and businesses from the end of this month, after the Energy Secretary agreed the regulator can grant consent for gas to be produced at the field. The move is expected to increase domestic gas production by around 6% at its peak.

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."

Jackdaw is owned and operated by Adura, which is a joint venture between Shell and Equinor, Norway's state oil company.

Russ Mould, investment director at AJ Bell, said: "While it is attracting opprobrium from environmental campaigners and some politicians, the green light for the Jackdaw North Sea gas field had shareholders in North Sea oil and gas companies celebrating.

"For Shell, which is developing the Jackdaw field, the decision is an obvious win, but it represents relatively small beer in the context of the group's global operations.

"However, suggestions of an improved regulatory backdrop for the industry in the UK has helped give a lift to smaller names with projects in the North Sea like Ithaca Energy, Serica Energy and Jersey Oil & Gas."

At 1140 BST, Shell shares were up 0.7% at 3,927.50p, while Ithaca Energy was 2.9% higher at 301.80p and Jersey Oil & Gas had shot up 9.7% to 130p. Serica Energy was 2.3% higher at 273.52p.