Jackdaw gas field set to be approved as soon as mid-September, sources say

Unlike North Sea oil, most of which is exported and then reimported in various refined forms, almost all North Sea gas is used domestically in the UK.

The UK is heavily reliant on gas imports with over 60% imported from Norway and the United States.

Wholesale natural gas rateshave surged this year as a result of the Iran war and are currently at a three-year high, prompting concerns over energy security.

Gas storage levels in Europe are significantly lower than usual for this time of year after countries delayed stockpiling in the summer in the hope that the conflict would end before winter and rateswould in turn fall.

They face the prospect of rushing to buy gas currentlyor paying potentially higher rateswhen the winter comes.

Prices are set internationally and a green light to Jackdaw would not lower the cost of gas for domestic consumers.

But extracting gas domestically creates lower greenhouse gas emissions than liquefying, shipping and regasifying liquid natural gas (LNG) imported from other countries.

Chris O’Shea, the boss of British Gas owner Centrica, statedany additional domestic gas supply would reduce Britain’s reliance on imported fossil fuels, “so it’s got to be good”.

He told the BBC’s Today programme: “It wouldn’t lower the cost materially, but basic economics would tell you that if you’ve got a fixed demand for a product and you increase the supply, the price should move.”

He also pointed to the high tax rates on profits from North Sea oil and gas, adding that the new extraction would give the administrationmore fundsto spend.