Cygnus Field Gets Government Go-Ahead
The UK government has today welcomed the development of the massive shallow water prospect, the Cygnus gas field, in the UK North Sea, following the officially sanctioning of it yesterday.
Announced at a delegation of UK ministers and oil and gas companies at the British Business Embassy in London today, the sanction gives Centrica, GDF Suez and Bayerngas the go-ahead to proceed with the 18 million cubic metre offshore field.
Yesterday, operator GDF Suez signed initial contracts for the field, which will see an investment of £375 million initially made. Of this investment, £337 million will be used to create 1,200 jobs, partner Centrica said today.
UK ministers welcomed the sanction today, which approves the Cygnus partners to begin operations on the £1.4 billion project.
"The North Sea remains a vital source of the nation’s energy security and our expertise is renowned the world over," UK Secretary of State for Energy and Climate Change Edward Davey said. "The Government is determined to maintain the best possible investment environment to ensure we capitalise fully on this national asset...
"The go-ahead for the Cygnus field is terrific news, and will contribute substantially to the UK’s gas needs and support thousands of high skilled jobs."
CEO of Centrica Sam Laidlaw said that the gas was of major importance to the company and to supply its customers' gas needs. "Today’s announcement represents a significant boost to the UK’s long term energy security and creates much needed jobs. For Centrica, which handles around a third of the UK’s gas and supplies half of its homes, this is an extremely important project as we look to unlock remaining gas in the North Sea and secure UK gas for our customers."
Centrica describes the Cygnus gas field as one of the biggest discoveries in the UK in the past 25 years. The company, which is the parent company of British Gas, holds the majority stake in the Cygnus field at 48.75 per cent. Operator GDF Suez holds a 38.75 per cent stake with Bayerngas holding the remaining 12.5 per cent.