Pic Credit: Adura Energy
Andy Burnham is expected to back the controversial Jackdaw gas field off the north-east coast of Scotland, allowing production to begin as early as this winter.
Government and industry sources have indicated that approval could be announced in mid-September, before Parliament breaks for the party conference season.
The final decision rests with Energy Secretary Miatta Fahnbulleh, with reports suggesting an announcement could be made on 15 September during a visit by Mr Burnham to Aberdeen.
Jackdaw lies around 150 miles east of Aberdeen and is operated by Adura, the joint venture created by energy giants Shell and Equinor to hold their UK North Sea assets.
The development is understood to be almost complete but cannot begin extracting gas without fresh consent from the UK Government.
Adura claims Jackdaw could provide around 6% of the UK’s gas supply at peak production – enough to heat the equivalent of 1.4 million homes.
The company also argues that producing gas domestically would strengthen energy security and result in fewer emissions than importing liquefied natural gas from overseas.
The field will be connected to the existing Shearwater production hub, with gas transported through existing infrastructure to St Fergus in Aberdeenshire.
Jackdaw was originally approved by the Conservative government in 2022. However, that consent was ruled unlawful by the Court of Session in Edinburgh following a legal challenge brought by Greenpeace.
Lord Ericht found that the environmental assessment had failed to consider the emissions that would be produced when the gas was ultimately burned.
The original consent was quashed, although construction work was allowed to continue while the project was reconsidered. No gas can be extracted until a fresh decision has been made.
Adura subsequently submitted additional environmental information examining the full impact of the development. A public consultation conducted by the offshore environmental regulator closed on 10 August.
The company estimates Jackdaw could produce up to 35.8 million tonnes of carbon dioxide equivalent during its 11-year lifespan, although it says a more likely figure would be around 23.6 million tonnes.
Environmental groups remain strongly opposed to the development. Greenpeace UK chief scientist Doug Parr previously described approving Jackdaw as “reckless and indefensible”, arguing that opening new fossil fuel fields would undermine efforts to tackle climate change.
The oil and gas industry insists the development will support employment, extend the life of existing North Sea infrastructure and reduce Britain’s reliance on imported energy.
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, welcomed reports that Jackdaw was moving closer to approval but said it “cannot be the end of the story”.
He urged ministers to also approve the Rosebank oil and gas development west of Shetland. A decision on Rosebank is expected separately later this year.
A UK Government spokesperson said any decision would consider the environmental assessments and representations submitted during the consultation.