East Anglia to be at forefront of fresh North Sea 'dash for gas' despite climate change warnings

A new government drive to fast-track fresh gas exploration in the North Sea has been welcomed by the energy industry in East Anglia, despite warnings from campaigners against climate change.

An area off the Norfolk coast has been earmarked as one of four priority areas which are likely to produce gas supplies quickly and benefit from existing infrastructure.

Supporters say it will stimulate the local economy and improve energy security to protect against blackouts in years to come, but opponents point out that it would be a major step backwards as the UK aims for net-zero carbon emissions.

There are hopes that the push could lead to fresh investment and jobs along the coast, particularly around the Bacton terminal in north Norfolk and Great Yarmouth on the east coast, which in recent years has refocused to become a renewable energy hub.

The other priority areas are off the coast of Lincolnshire and Yorkshire.

The East of England Energy Group, a trade body representing companies in the industry, said the new licensing round would help to address the security of supply over the medium to long term. 

Executive chairman Martin Dronfield said the Southern North Sea, off the East Anglian coast, was the UK’s principal natural gas basin.

"With a focus on energy security, our region is quite literally keeping the nation’s lights on, and heating our homes and businesses with the Bacton Terminal in North Norfolk supplying around a third of UK’s domestic gas needs and more than 5GW of installed offshore wind off our coast."

He said the group welcomed the announcement but wanted "to see a more integrated strategy for offshore energy developments across oil and gas, wind, hydrogen and carbon capture, and associated infrastructure, to really maximise the potential of our region's skills and supply chain businesses".

The decision has been criticised by environmental campaigners who said the government should be investing in renewable energy sources.

But ministers said the new licensing round would boost both the economy and energy security.

Business and energy secretary Jacob Rees-Mogg spoke out as the North Sea Transition Authority (NSTA) began the 33rd round of offshore licences.

Licences are being made available for sectors of the North Sea - known as blocks - with the NSTA estimating that more than 100 may be granted.

Mr Rees-Mogg said: "Putin's illegal invasion of Ukraine means it is now more important than ever that we make the most of sovereign energy resources, strengthening our energy security now and into the future."

But Green Party co-leader Adrian Ramsay said: "We can only hope to hold global warming to under 1.5C degrees if we leave fossil fuels in the ground.

"The government's claim that burning ever more fossil fuels from the North Sea will help the UK meet its international obligations to become net-zero by 2050 has no connection to reality - we truly have stepped through the looking glass."

The Green Party also said any new production, even if fast-tracked, would not be available for years and so would not help to address the current crisis.

The government said the new oil and gas exploration would be "entirely compatible" with climate targets, and "we have one of the lowest emitting production systems for oil and gas".

Speaking to BBC Breakfast, climate minister Graham Stuart said: "Actually it's good for the environment, because when we burn our own gas it's got lower emissions around its production than foreign gas... as well as supporting British jobs.

"So you really can be assured that - I know it sounds contradictory - but it's actually good for the environment that we are going to produce more of our gas and oil at home."

Companies are being urged to apply for licences covering areas to the west of Shetland, in the northern North Sea, the central North Sea, the southern North Sea and east Irish Sea.

A total of 898 blocks and part-blocks are being made available - but in a bid to encourage production of new oil and gas supplies as quickly as possible, the NSTA has identified four "priority cluster areas" in the southern North Sea.

These areas - located off Norfolk, Lincolnshire and Yorkshire - are known to contain hydrocarbons and are close to existing infrastructure, giving them the potential to be developed quickly.