The Chemical Industries Association has welcomed the UK Government’s decision to approve the Jackdaw gas field in the North Sea, describing it as a positive step towards strengthening the country’s energy security and supporting the future of energy-intensive manufacturing.
The decision comes at a critical time for the UK chemical industry, which continues to face intense international competition, high energy costs and growing pressure on domestic manufacturing capacity.
Natural gas is an essential feedstock for parts of the chemical industry and a major source of energy for manufacturing processes. A secure, reliable and competitively priced supply of gas is therefore fundamental to maintaining the UK’s industrial capability and reducing vulnerability to international supply disruptions.
Jackdaw, operated by Adura, the Shell and Equinor joint venture, is expected to contribute around 6% of UK North Sea gas production at peak output. Its development represents an opportunity to make greater use of domestic resources while supporting skilled employment and activity across the wider industrial supply chain.
Steve Elliott – Chief Executive of the Chemical Industries Association, said: “We welcome the Government’s decision on Jackdaw.
“A resilient UK economy needs a resilient manufacturing base, and that means recognising the essential role that reliable and affordable energy supplies play in keeping British industry competitive.
“Chemistry is at the heart of modern manufacturing. Our industry supplies the materials and essential chemicals needed by sectors ranging from pharmaceuticals and healthcare to food production, construction, automotive manufacturing and clean energy technologies.
“Yet UK chemical manufacturers face some of the highest industrial energy costs among competing economies. Without urgent action to address this disadvantage, we risk losing further investment, production capacity and strategically important manufacturing capabilities to overseas competitors.
“Developing domestic gas resources will not, on its own, solve the UK’s industrial energy cost problem. However, decisions that support the resilience of domestic supply are an important part of a wider, pragmatic approach to energy security. The Government must now match this decision with a comprehensive plan to restore the competitiveness of UK manufacturing — including action on industrial electricity and gas costs, support for energy-intensive industries, and investment in the infrastructure needed for the transition to a lower-carbon economy.”
He stressed that “energy security and decarbonisation must be pursued together. Chemical manufacturers are central to developing and producing the materials required for the transition to net zero, including technologies used in batteries, renewable energy, insulation and hydrogen”.
However, the Association warned that the transition must be managed in a way that enables UK businesses to continue manufacturing competitively at home, rather than increasing reliance on imported chemicals and materials produced elsewhere.
The Association called on the Government to build on the Jackdaw decision by delivering a clear, long-term industrial energy strategy that recognises the strategic importance of chemicals to the UK economy, national resilience and downstream manufacturing.
