How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Business gas: £3bn North Sea gas field given green light


Development of the largest gas field discovered in the UK for over a decade is going ahead. What does this mean for the energy industry and SME customers?

The Culzean field gas field has been approved for production by the UK Oil & Gas Authority. The large scale of deposits, estimated at 250–300 million barrels of oil equivalent, enough to satisfy 5% of UK demand at peak production, TCE reported.

Production is set to start in 2018 and continue for at least 13 years, peaking at production rates of 60,000–90,000 barrels per day, the Guardian reported. Operator Maersk Oil and partners JX Nippon and BP will invest £3bn (US$4.6bn) in the development, creating more than 400 direct jobs and supporting 6,000 more.

Reigniting the gas business

The Culzean development may go some way towards allaying mounting fears that the North Sea is well past its prime. Maersk Oil said that the project has been made possible by tax breaks introduced by the UK government that support the development of costly high-pressure, high-temperature projects.

In a statement released on the Maesk Oil company website, Andy Samuel, CEO of the Oil & Gas Authority, says, “Maersk Oil and partners’ £3bn investment to develop the Culzean discovery is excellent news for the UK during a period when the decline in global oil prices has created difficult operating conditions for this critical sector of our economy.”

The Chancellor of the Excheque George Osborne MP called the announcement “a clear signal that the North Sea is open for business”.

Impact on business gas prices

The influence outside of suppliers to the gas business will be limited. Greater security of business gas supply is always beneficial, especially given the array of unpredictable events that can influence business gas tariffs, but an extra 5% of supply can have only a limited influence on business gas rates.

Perhaps most obviously, few SMEs will be willing to wait three years for a modest reduction in gas prices.

In fact, unless you have a dedicated purchasing department, a better deal is usually available. A business price comparison doesn’t have to be onerous: just 20 minutes is enough for us to quickly compare business gas suppliers and switch you to a new deal (with us taking care of the paperwork). Give us a call on 0330 0100 251 (or request a call back using our form).

Find out more about business gas at our dedicated page.

Related Articles

energy news 21/01/2017

Energy News – 21/01/2017

The week of Donald Trump’s inauguration has seen shaky energy markets, a landmark Brexit speech by Theresa M...

Read More
how business leaders avoid burnout

How business leaders avoid burnout

When you’re a small business owner the buck stops with you, which can make it incredibly difficult to sw...

Read More
how to make 2017 your best year ever

How to make 2017 your best year yet

Whether you heaved a sigh of relief when 2016 ended, or said goodbye to the year with sadness, we have some ti...

Read More
Excellent, 9.7 / 10

Excellent, efficient service

"Mark at Switch My Business has always been extremely helpful and efficient in finding us the best until the deals and handing the transition between old and new companies. Would recommend 100%."

This review was posted by Karl Hopkins on the 24th of January 2017

Very Happy

"Aaron Gallagher provided me with a very good service. Simple switch made easy. Thank You"

This review was posted by Giani on the 24th of January 2017

Mark Weeks

"It was an absolute pleasure dealing with Mark. He was courteous, very customer focused. Mark was able to answer all my questions and was very informed. I would have no hesitation recommending your company. Having been a manager in global blue chip organisation I would not hesitate in employing Mark. A definite asset to any team. Cheerful, polite and a lovely disposition."

This review was posted by Caroline Dyke on the 24th of January 2017

Very helpful and friendly

"Very helpful and friendly - explained it clearly and made the process quick and easy"

This review was posted by Anne O'Hara on the 24th of January 2017

MARK WEEKS

"Mark was a pleasure to deal with and worked hard to provide the best rates and explain what options were available to us without making us feel under pressure."

This review was posted by LORRAINE LAWRENCE on the 24th of January 2017