Government approves Jackdaw gas field as Rosebank decision is delayed

The government has approved production from the Jackdaw gas field in the North Sea, ending almost two years of uncertainty after legal challenges. The Energy Secretary, Miatta Fahnbulleh, made the announcement in Aberdeen on Wednesday morning, alongside the Chancellor, John Healey, and the Scottish Secretary. Gas from the field, about 150 miles east of Aberdeen, could begin flowing into the UK network within weeks, possibly by the end of the month.

Jackdaw was first approved by the Conservative government in 2022, but that consent was overturned by the courts because the climate impact of burning the gas had not been properly assessed. The Supreme Court later ruled that new fossil fuel projects must take account of downstream emissions. Ministers say the project now has proper assessment and that Jackdaw already held a licence, so approving it does not breach Labour's manifesto promise not to issue new oil and gas licences. Critics say the decision is still against the spirit of that promise.

The operator Adura, co-owned by Shell and Equinor, says Jackdaw can produce enough gas to heat about 1.4 million homes for a decade. The company puts the field's contribution at up to 6% of UK gas production, though because the UK imports so much gas, officials and analysts say it will meet only about 2% to 3% of total UK demand. The government says it will support jobs, bring in tax revenue and improve energy security. It has also announced a new Energy Wealth Fund to direct extra North Sea tax revenues into clean energy projects. Ministers concede the gas will not bring down household bills, because prices are set on international markets.

The Prime Minister, Andy Burnham, defended the decision in the Commons as pragmatic. He said it would build a bridge to a renewable future and that the alternative would be importing more gas. He also said he had asked the Chancellor and the Energy Secretary to look at removing standing charges from gas bills. Standing charges are fixed daily fees, averaging around 28p to 30p a day, or just over £100 a year. The review could help some low-use households, but details are unclear and the cost may be recovered elsewhere. The announcement came as inflation rose to 3.5%, driven partly by fuel prices.

The decision drew sharply different reactions. The Conservatives said it was too late and accused the government of dithering, while pressing for Rosebank and an end to the ban on new licences. The Green Party and environmental groups condemned the approval. Friends of the Earth said it would do nothing to cut bills and would worsen the climate crisis. Greenpeace said it showed the fossil fuel lobby still held influence. Some Labour MPs are uneasy, and around 18 are reported to have signed a letter of complaint. The SNP asked whether Scottish tax revenues would be reinvested in Scottish renewables. The Liberal Democrats cautiously welcomed the approval but said it would provide only about 2% of UK gas demand. Reform UK challenged the Prime Minister over whether the decision would lower prices. Donald Trump welcomed the move, saying the UK should 'go full blast' and 'take down the costly and ridiculous windmills'.

The next decision is Rosebank, the largest known untapped oil field in UK waters, about 80 miles northwest of Shetland. It is a much larger project, expected to produce for about 25 years and mostly oil rather than gas, with the oil likely to be sold on international markets. Its lifetime emissions are estimated at around 250 million tonnes of carbon dioxide, far more than Jackdaw. The government has not announced a decision. Ministers say it will be considered separately. Reports suggest the Energy Secretary is minded to reject it, but no final decision is expected for weeks or months. Some government sources say an announcement could come before Christmas.

Supporters say using domestic gas is better than importing liquefied natural gas with a higher carbon footprint and that the tax revenue and jobs matter for Aberdeen and the wider supply chain. Opponents say the climate case is overwhelming and that the economic benefits have been exaggerated. The debate is likely to continue, with Rosebank now the sharper political test.