Centrica plc, the parent company of British Gas, welcomed the announcement from the Government on the shallow water gas field allowance, an important step forward in ensuring that the UK can maximise the potential of its natural resources in the North Sea.
The allowance will enhance the economics of the Cygnus project, the largest gas discovery in the Southern North Sea for 25 years, which will enable Centrica to proceed with the development.
The development is expected to create around 4,000 jobs in the UK across the supply chain. At peak production, the field would account for around 5% of the UK’s total gas production, enough to meet the demand of nearly 1.5 million homes.
The Cygnus partnership plans to invest £1.4 billion to develop the project, with more than 80% expected to be spent with UK-based companies.
Centrica Chief Executive Sam Laidlaw said: “As the UK becomes increasingly dependent on imported gas, today’s announcement represents a significant boost to the UK’s long term energy security as well as creating much needed jobs.
“For Centrica, this is an extremely significant project as we look to unlock remaining gas in the North Sea, securing UK gas supplies for our customers.”
[mappress] LNG World News Staff, July 30, 2012; Image: Centrica