Britain has approved the long-delayed Jackdaw North Sea gas field, ending years of legal and political disputes over a project that has exposed tensions between Labour’s climate commitments and its efforts to strengthen energy security.
Energy Secretary Miatta Fahnbulleh said Jackdaw could begin supplying gas to British homes and businesses as early as the end of October. The project is expected to help offset soaring energy prices linked to the war in Iran.
At peak production, the field will increase domestic gas output by about 6 per cent and operate for up to 11 years, the Government said. Ministers also said the development would help protect jobs.
Prime Minister Andy Burnham said the decision was justified while households were struggling with rising bills.
“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,” he said.
The Government will establish an Energy Wealth Fund with an initial £2 billion investment, equivalent to A$3.8 billion, to direct oil and gas revenues towards the transition to cleaner energy.
Mr Burnham is seeking to balance pressure to contain household energy costs with the views of Labour MPs who favour giving priority to environmental concerns. The fund is also intended to address criticism that approving new gas fields conflicts with Britain’s climate commitments.
“Our approach will ensure we can boost our energy security, back British workers, ring-fence future North Sea proceeds to speed up the green transition, hit our ambitious climate targets and – crucially – bring down bills,” Mr Burnham said.
The Unite union welcomed the decision, while the leader of the Green Party condemned it as “climate vandalism”.
Jackdaw is operated by Adura, a joint venture between Shell and Norway’s Equinor. The field, along with the Rosebank oil development, was left in limbo after a court ruling in 2025 temporarily blocked both projects.
The Government has not yet approved Rosebank. The decision on Jackdaw also comes after repeated calls from US President Donald Trump for Mr Burnham to expand North Sea drilling, following a sharp decline in production since the basin’s peak in the late 1990s.
