Jackdaw Gasfield

Lindsay Hoyle Excerpts

Wednesday 21st October 2026 Commons Chamber

[Mr Speaker]

Before we come to the statement on Jackdaw, I have to say to the Minister that I am sorry that I have to address you on this matter rather than the Secretary of State. It is shameful that this announcement was not made to the House first, and it is an immense discourtesy to the House that the Secretary of State is not here to make the statement. I am sorry that Sky News is more important than Members on both sides. This treatment is appalling.

The Minister will know that this issue has been of great interest to the House, as is evident from the many questions asked by hon. Members from all parts of the House, which have been asked and answered over recent months despite the concerns about a quasi-judicial process—so let me not hear that as an excuse. It is simply not good enough that the announcement was trailed in the press last night and announced all over the media this morning by the Secretary of State before it could be properly scrutinised in this House. It is not the first time that this has happened on this subject, and that is what makes it more shameful.

If this was a leak, I am sure there will be a leak inquiry, or is it that the Department is deliberately briefing out to the media? The Guardian and the BBC were covering it last night, and it was on the radio. It seems that Ministers once again need reminding of the Government’s own ministerial code, which makes it clear that important policy announcements should be made first to this House, especially when we are sitting. There is no excuse.

I hope the Minister is taking this on board. I am sorry that he is having to take the flak for a Secretary of State who does not care about Members on this side or that side of the House—wherever. In the end, we are elected by our electorate to hear statements here, not via the media. Am I getting the message through, Minister? We have had this conversation once before. I am sorry that you are being set up as the patsy who has to deal with this ridiculous situation. I want us to learn. I was hoping that we had changed what happened previously. I thought this was a new beginning—well, today is certainly a bad one, isn’t it?

[The Minister for Energy (Michael Shanks)]

First, Mr Speaker, I entirely respect your comments. I hope that in my time in this House I have always given you the impression that I take this House seriously. Your points have been noted, and I will absolutely take them back to the Department.

[Mr Speaker]

It would be different if we had not had this conversation once before—you promised me previously that these comments would be noted. I am sorry that you have been put up when the Secretary of State cannot be bothered to come, Minister. I am sorry that Aberdeen is more important than the MPs who have been elected.

[Michael Shanks]

With your permission, Mr Speaker, I will now make a statement on the offshore Jackdaw gasfield and the Government’s approach more broadly to North sea oil and gas. This supplements the written ministerial statement that I made to the House on the topic earlier this morning.

The original grant of consent for the Jackdaw project, made in 2022 under the previous Government, was judged to be unlawful and was quashed by the courts. This was because emissions from the burning of extracted gas were not considered, and it therefore did not assess the full environmental impacts of the project. My right hon. Friend the Energy Secretary and the regulator have now retaken the relevant decisions, fully taking into account environmental impacts.

Today, I can inform the House that the Energy Secretary has decided in favour of the project and that the regulator, the North Sea Transition Authority, has now granted consent for gas to be produced at the licensed Jackdaw field. Given that the court permitted the developer to continue development at risk until a new consenting decision was made, the project will therefore start to supply gas to British homes and businesses by as soon as the end of this month.

In reaching her decision, the Energy Secretary considered all relevant information in the round. She looked at the project’s expected benefits to the UK, including its contribution to energy security, employment, impacts on other energy infrastructure and other economic benefits, and carefully weighed them against the potential environmental effects, including the effects relating to greenhouse gas emissions. The full reasons for our decisions are set out in detail in the decision document, which was published on gov.uk.

I want to assure the House that the Government remain committed to tackling the climate crisis and to moving away from fossil fuels and towards renewable and nuclear energy. The recent heatwaves and weather events we have seen demonstrate why that is critical, and the Secretary of State will be leading the UK delegation to COP next month to drive global action and build a credible pathway back to 1.5° of warming.

I want to be clear that this project will not prevent the UK from being able to meet its legally binding limits on carbon emissions and achieve net zero by 2050. But even on the path to net zero, the UK will still require oil and gas as part of our energy needs for decades to come. This decision is consistent with the Government’s manifesto commitments to end new licences, explore new fields and support the management of existing fields for their lifespan.

The Chancellor and the Energy Secretary have also announced that the Government will establish a new North sea energy wealth fund, which will use tax revenues from North sea oil and gas to invest in net zero projects and support the green transition. This will start with an initial £2 billion capital injection of funding, with future revenues from the North sea flowing into the fund over time. It will support our plans to delink gas and electricity over the course of the Parliament, ensuring that home-grown renewables and low-carbon power set the price of electricity far more than gas, helping to protect households and businesses from volatile fossil fuel markets and bring down bills for good.

The North sea future plan set out our approach to securing a managed, orderly and prosperous transition and set out how we will deliver our manifesto commitment to support the management of existing fields by introducing transitional energy certificates, and we will legislate for those reforms when parliamentary time allows.

However, a small number of tieback projects face urgent investment and operational decisions now, and I have therefore asked the North Sea Transition Authority to consider whether any such projects could benefit from similar measures now, before the legislation is in place. This is a limited interim arrangement for urgent cases where operators can demonstrate committed investment, credible delivery plans and near-term activity. Any decision will remain for the NSTA, in accordance with its statutory responsibilities.

Timely decommissioning is important for both the environment and the economy, and this Government are keen to unblock and progress decisions in a timely way. I can also announce today that the regulator has invited the decommissioning programme for the Brent installations, marking an important step in restarting another regulatory process that has been on hold for years.

My officials are also beginning discussions with industry leaders on a refresh of the North sea transition deal to ensure that future domestic oil and gas production continues to benefit the UK and to build the energy industries of the future. First agreed in 2021, the deal aims to provide a clear path for the industry to support the UK in reaching net zero carbon emissions by 2050, while protecting jobs and supporting energy security.

Finally, as the Prime Minister said a few moments ago, we are looking at removing standing charges on gas bills at the earliest opportunity.

Today’s decision means that we will get more power flowing directly into British homes and businesses this winter as we continue our transition to renewables. I commend this statement to the House.

[Mr Speaker]

I call the shadow Secretary of State.

--- Later in debate ---

[Michael Shanks]

In the two and a half years that the hon. Gentleman says that he has had to think about this, he might have come up with something better than that performance. The Conservatives’ lack of contrition for a decision that was quashed by a court is absolutely shameful. I reiterate that the Court was very clear in its judgment that while the decision did not stand, the project could continue to be developed, so there has been no delay in its development; that is why extraction from the Jackdaw field can continue.

The hon. Gentleman talked about dither and delay. That brings me to the truth of this, which is that the Conservative party left Britain with an energy system that was less secure, more exposed to international shocks and slower to invest than it should have been. I watched the Conservative party conference in great detail, and I am delighted that the hon. Gentleman seems to be shifting his party’s position back to what it was before the previous shadow Secretary of State’s time, and is supporting more renewables. I really welcome that, and I look forward to working with him to make that a success, because we agree on that.

This decision is important for our energy security and jobs, but the long-term pathway for Britain is towards not fossil fuels, but building the clean power system that we need, electrifying the economy, and building the nuclear that the hon. Gentleman claims to care so much about, although he did not build any in his two years as Nuclear Minister, due to dither and delay. We fell behind as a country on the energy security that we needed. This decision is part of our response to energy crises. To have a secure long-term future, we must build up the industries that come next. That is important for Britain’s energy security, jobs, and opportunities in his constituency and right across the country. That is what this Government will get on and do.

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

I warmly welcome the Minister’s statement and the commitment to going ahead with Jackdaw. The Select Committee has heard evidence time and again about the damage done by the chaotic deindustrialisation of the ’80s, and the failure in the 2010s and early 2020s to take action in the North sea. The phrase “North sea energy wealth fund” has striking echoes with what Norway did right to avoid disastrous consequences of deindustrialisation.

The Committee has heard just how important supply chain companies and North sea oil and gas workers are, and how important they will be, when working with renewables, in the future. The Minister announced the fund and the North sea transition deal. Does he agree that the fastest, most effective way of delivering the energy transition is to support existing operations, supply chains and workers in North sea and oil and gas, so that they are available as we gear up on renewables and nuclear?

[Michael Shanks]

I agree with my hon. Friend about the transition. The vast majority of jobs in the oil and gas industry are in the very supply chains that we need to build the renewables and networks of the future, so it is important that we hold on to those; that is a huge opportunity.

Pragmatism has to go both ways. We have to be pragmatic about oil and gas in the North sea, but it would be irresponsible not to make the investment needed in clean power and the long-term future of jobs. We are seeking to do both. We will make sure that the transition is managed, by investing the revenues from this gas project—that is £2 billion initially, but additional revenues will flow into it—and will invest in the clean power projects that will help us to get off fossil fuels in the long term, while retaining the critical workforce in the UK.

[Mr Speaker]

I call the Liberal Democrat spokesperson.