UK inflation jumps to 3.5% on rising motor fuels costs; UK approves Jackdaw gasfield – business live
Petrol and diesel costs rise the most in four years; green light for controversial North Sea gasfield dismays environmental campaigners and a number of Labour MPs The approval of Jackdaw is an “important step” for the North Sea, according to Shell . The UK energy giant jointly owns Jackdaw operator Adura , which is headquartered in Aberdeen, together with Norway’s Equinor . This is an important…
UK inflation rates surged to 3.5%, driven by a sharp increase in the cost of motor fuels. The UK government approved the Jackdaw gasfield in the North Sea, a decision that has been welcomed by energy giants Shell and Norway's Equinor. The Jackdaw gasfield, which is situated 150 miles east of Aberdeen, is expected to contribute around 6% of domestic gas production, but only 2% of total demand.
Despite this, the decision is seen as an important step for the North Sea to maintain its role in the country's energy security and economy. Adura, the North Sea joint venture between Shell and Equinor, argued that rejecting the two projects could cost the UK economy nearly £10.8 billion over the next decade. The Jackdaw gas field is considered environmentally equivalent to Norwegian gas, as it has no flare and a carbon intensity of eight kilogrammes per barrel of oil equivalent, which is the same as Norwegian pipe gas.
Energy experts have highlighted that while the Jackdaw gasfield is a step towards energy security, it is not a solution to the cost-of-living crisis, as it will only provide a small portion of domestic gas production and only marginally reduce total demand.
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