Government approves Jackdaw gas field with Rosebank decision pending

The UK government has approved gas production from the Jackdaw field in the North Sea, ending nearly two years of uncertainty after a court challenge. The Energy Secretary, Miatta Fahnbulleh, announced the decision in Aberdeen with the Chancellor, John Healey, and the Scottish Secretary. Gas is expected to flow into the UK network within weeks, with the government saying it could be in homes and businesses by the end of the month.

Jackdaw lies about 150 miles east of Aberdeen. It was discovered in 2005 and first approved for development by the Conservative government in 2022. That consent was overturned by the Scottish courts because ministers had not properly assessed the climate impact of burning the gas. The licence itself remained, and the Labour government reopened the decision after updated environmental assessments and a public consultation. The project is owned by Adura, a joint venture between Shell and Equinor.

The government says the field will support jobs and improve energy security. Adura says Jackdaw can produce enough gas to heat 1.4 million homes for a decade and could meet around 6% of UK gas demand. Independent analysis suggests the field will add around 2% to 3% of total UK gas use, because the UK imports much of its gas. Ministers have also said the project will raise tax revenue, with more than £1bn over the next decade, and that money will go into a new Energy Wealth Fund for renewable projects. The government says Jackdaw supports about 300 jobs, including 27 new roles and 273 existing jobs in the supply chain. Critics say the jobs and tax benefits are modest.

The Prime Minister, Andy Burnham, defended the decision as pragmatic and as a bridge to a renewable future. He said the UK will need gas for decades and that domestic production is better than importing liquefied gas with a higher carbon footprint. He also insisted the decision is compatible with the UK's net zero target for 2050 and with Labour's manifesto, because Jackdaw already held a licence and the promise not to issue new licences remains. The Energy Secretary said the decision was driven by energy security and climate compatibility, not by hopes of cutting bills. She said affordability remains a priority.

Ministers have acknowledged that Jackdaw will not bring down household energy bills, because gas prices are set on international markets. The government has also announced a review of standing charges on gas bills. The Prime Minister said he has asked the Chancellor and the Energy Secretary to see whether the fixed daily charge can be removed. The charge is around 28p to 30p a day, or more than £100 a year for many households. Details of how the change would work, and who would pay for it, have not been set out. The announcement came as inflation rose to 3.5%, driven in part by fuel prices, and as households face another rise in energy bills.

Environmental groups, including Greenpeace and Friends of the Earth, condemned the approval. They said it will do little for energy security, will not cut bills and will undermine the UK's climate commitments. Protesters gathered outside the Department for Energy and Net Zero in London. The Green Party challenged the Prime Minister in the Commons, and some Labour MPs are uneasy. Reports said around 18 Labour MPs signed a letter complaining about the decision. The government argues that the alternative would be importing more gas, and that domestic gas has lower emissions than liquefied imports.

The Conservative leader, Kemi Badenoch, said the decision was overdue and accused the government of dithering. She called for Rosebank to be approved and for Labour's ban on new oil and gas licences to be lifted. The Liberal Democrats gave the Jackdaw decision a cautious welcome but said it will provide only about 2% of UK gas demand. Reform UK challenged the government over whether drilling would lower prices. The US President, Donald Trump, welcomed the decision, calling it great news for the wealth and prosperity of the UK and Aberdeen, and urging the UK to go full blast and take down windmills.

The next major decision is Rosebank, the largest untapped oil field in UK waters. It lies about 80 miles northwest of Shetland and about 400 miles from Jackdaw. It is much larger than Jackdaw, with an estimated 300 million to 500 million barrels of oil, a lifespan of about 25 years and potential emissions of around 254 million tonnes of CO2. Most of its output would be oil for export rather than gas for the UK market. The government has not yet decided. Reports suggest the Energy Secretary is minded to reject it, while the Chancellor has used language about oil and gas revenues that some interpreted as a sign he may favour approval. A decision is expected before Christmas or by the end of the year. The case will test how far the government is willing to go in backing North Sea fossil fuels while claiming to keep its climate targets on track.