The UK government on Wednesday finally approved the Jackdaw North Sea gas field 250 kilometres east of Aberdeen, ending years of legal and political wrangling.
UK energy minister Miatta Fahnbulleh said the project will start to supply gas to UK homes and businesses from as early as the end of this month.
Fahnbulleh also said a new Energy Wealth Fund would be established by the UK government with a £2 billion downpayment to reinvest oil and gas revenues into the climate transition.
The UK energy minister said Jackdaw was expected to increase UK domestic gas production by around 6% at its peak and support the UK’s gas supply over its lifespan of up to 11 years, boosting energy security and protecting hundreds of jobs.
“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,” said UK Prime Minister Andy Burnham.
“Even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea.”
Adura, the joint venture between Shell and Norway’s Equinor that operates the project, has said Jackdaw will produce up to 40,000 barrels of oil equivalent of natural gas per day at peak output.
The previous Conservative UK government approved the Jackdaw project in 2022, but climate activists challenged the decision in court and challenged the approval for the Rosebank oil and gas field north-west of Shetland.
A 2025 court ruling barred operators from extracting oil or gas until they received fresh UK government consent that takes into account emissions from the burning of the fields’ hydrocarbons.
Aberdeen & Grampian Chamber of Commerce has welcomed the UK government’s decision to approve the Jackdaw gas field, describing it as a major boost for energy security, jobs and investment in the North Sea.
The Chamber said the decision would allow a near-complete project to begin supplying British homes within weeks, reducing the country’s reliance on imported gas.
The Chamber has also urged UK ministers to build on the momentum by granting approval for Rosebank, warning that further delays risk undermining the UK’s energy security and the future of its domestic supply chain.
Aberdeen & Grampian Chamber of Commerce CEO Russell Borthwick said: “This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.
“Jackdaw is 99.9% complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks. This is a direct, tangible boost to the UK’s energy security at a time when it matters most.
“Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas. That’s good for jobs, good for the supply chain, and good for the climate.
“But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the North East of Scotland. Government must now move with the same urgency and pragmatism and get Rosebank over the line without further delay.”
Adura CEO Neil McCulloch said: “This decision is an important and positive step forward for Adura and for the future of UK energy. It provides certainty to the businesses and skilled workers already delivering the project and demonstrates the value of pragmatic, evidence-led decision-making.
“We would like to thank OPRED for conducting a rigorous and thorough process, and the UK Government for reaching its decision on the evidence before it.
“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.
“Taken together, Jackdaw and Rosebank offer significant benefits for the UK: strengthening energy security, supporting thousands of skilled jobs and apprenticeships, sustaining supply chain businesses across the country and unlocking billions of pounds of investment, economic activity and revenues to support government spending priorities.”