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Released August 03, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Oil and gas major Shell Plc (NYSE:SHEL) (London, England) has given the final green light to the Jackdaw gas field project in the U.K. North Sea.
The final investment decision comes just months after the project was granted permission by U.K. authorities, despite having failed to secure permission at the end of 2021 on environmental grounds. The project is expected to come online in the mid-2020s and at peak production rates, is expected to produce 6.5% of the U.K.'s total gas needs, enough to heat 1.4 million homes. Jackdaw, discovered in 2005, has reserves of between 120 million and 250 million barrels of oil equivalent (boe). It is located approximately 275 kilometers (km) east of Aberdeen in the central North Sea. Industrial Info is tracking six projects associated with Jackdaw with a combined investment value of more than US$750 million.
"We are committed to providing our customers with secure and stable supplies of energy, and to do so responsibly, efficiently and economically," said Shell Upstream Director Zoe Yujnovich. "Investments like Jackdaw are consistent with the U.K.'s North Sea Transition Deal and Shell's Powering Progress strategy, providing the energy people need today while serving as the foundation for investments in the low carbon energy system of the future."
Shell estimates that the field will produce 40,000 boe per day when fully operational. The development consists of a new wellhead platform (WHP), four production wells and a 31-km pipeline from the Jackdaw WHP to the Shearwater gas hub. The project is part of Shell U.K.'s broader intent to invest £20 billion-£25 billion (US$24 billion-$30.1 billion) in the U.K. energy system over the next decade. Up to 75% of that will be for the development of low- and zero-carbon products and services.
Gas from the Jackdaw field will come ashore at the St. Fergus gas terminal in Scotland, where Shell is involved in the development of the Acorn Carbon Capture and Storage project. The project could sequester carbon dioxide (CO2) from industrial clusters in Scotland, the U.K. and northern Europe. Acorn could also be used to reform natural gas into low-carbon hydrogen, by capturing and storing the CO2. Industrial Info is tracking the key projects and future phases planned for the large-scale project. Acorn CCS Phase One will see around 300,000 tonnes per year of existing CO2 emissions from the St. Fergus gas terminal captured, dried, compressed and sent through the Goldeneye Pipeline to be injected into the Acorn CO2 Storage Site--a huge volume of sandstone rock, found more than 2.5 km under the seabed, approximately 100 km offshore from St Fergus. Phase I is envisaged as a commercial-scale CO2 transportation and storage solution for millions of tonnes of CO2 per year. Phase II will see the start of hydrogen production.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The final investment decision comes just months after the project was granted permission by U.K. authorities, despite having failed to secure permission at the end of 2021 on environmental grounds. The project is expected to come online in the mid-2020s and at peak production rates, is expected to produce 6.5% of the U.K.'s total gas needs, enough to heat 1.4 million homes. Jackdaw, discovered in 2005, has reserves of between 120 million and 250 million barrels of oil equivalent (boe). It is located approximately 275 kilometers (km) east of Aberdeen in the central North Sea. Industrial Info is tracking six projects associated with Jackdaw with a combined investment value of more than US$750 million.
"We are committed to providing our customers with secure and stable supplies of energy, and to do so responsibly, efficiently and economically," said Shell Upstream Director Zoe Yujnovich. "Investments like Jackdaw are consistent with the U.K.'s North Sea Transition Deal and Shell's Powering Progress strategy, providing the energy people need today while serving as the foundation for investments in the low carbon energy system of the future."
Shell estimates that the field will produce 40,000 boe per day when fully operational. The development consists of a new wellhead platform (WHP), four production wells and a 31-km pipeline from the Jackdaw WHP to the Shearwater gas hub. The project is part of Shell U.K.'s broader intent to invest £20 billion-£25 billion (US$24 billion-$30.1 billion) in the U.K. energy system over the next decade. Up to 75% of that will be for the development of low- and zero-carbon products and services.
Gas from the Jackdaw field will come ashore at the St. Fergus gas terminal in Scotland, where Shell is involved in the development of the Acorn Carbon Capture and Storage project. The project could sequester carbon dioxide (CO2) from industrial clusters in Scotland, the U.K. and northern Europe. Acorn could also be used to reform natural gas into low-carbon hydrogen, by capturing and storing the CO2. Industrial Info is tracking the key projects and future phases planned for the large-scale project. Acorn CCS Phase One will see around 300,000 tonnes per year of existing CO2 emissions from the St. Fergus gas terminal captured, dried, compressed and sent through the Goldeneye Pipeline to be injected into the Acorn CO2 Storage Site--a huge volume of sandstone rock, found more than 2.5 km under the seabed, approximately 100 km offshore from St Fergus. Phase I is envisaged as a commercial-scale CO2 transportation and storage solution for millions of tonnes of CO2 per year. Phase II will see the start of hydrogen production.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
