Shell Delivers Final Greenlight to Jackdaw Gas Project in North Sea
(Reuters) — Shell Plc said on Monday it had made a final investment decision to develop the Jackdaw gas field in the British North Sea, which is expected to come online in the mid-2020s and could provide 6% of U.K. gas output.
The Jackdaw project, which had been initially rejected by British authorities, received regulatory approval earlier this year after Shell changed its environmental development plan.
The decision to definitely move ahead with Jackdaw comes as British households struggle with high gas prices, which have soared even more since the Russia-Ukraine conflict started in February.
Britain's parliament this month approved a 25% windfall tax on oil and gas producers in the British North Sea to help buffer the blow to people's budgets, a move which some firms have said will hurt investment in domestic output.
The government has also said it wants to strengthen its domestic oil and gas production, which is in decline.
At the same time, however, Britain is under pressure to curtail its fossil fuel use and greenhouse gas emissions after it pledged to become a net zero carbon economy by 2050.
Jackdaw, which has reserves of between 120 million and 250 million barrels of oil equivalent, will be tied to Shell's existing Shearwater gas hub. Shell expects the field to produce 40,000 barrels of oil equivalent per day at its peak.
"Jackdaw is part of Shell UK’s broader intent to invest 20 to 25 billion pounds ($24.08 billion to $30.11 billion) in the UK energy system in the next decade, subject to... stable fiscal policy," Shell said.
($1 = 0.8304 pounds)
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments