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industry & government news

CAMBO OIL AND GAS FIELD LICENCE to evaluate all potential future options

for the project.”
EXTENDED OVER SUPPLY FEARS gas imports from Russia, according to
The UK gets just 5-6 per cent of its
analysis of government data by think
tank ECIU.
Much of Britain’s gas comes from the
North Sea and Norway, but prices are
still set by international markets.
Any gas newly extracted domestically
would belong to the company who
produced it and be sold on international
markets to the highest bidder.
THE FUTURE OF THE CAMBO FIELD In February, the government’s
HAS SPARKED CONTROVERSY independent advisers the Climate
Change Committee said increased
THE LICENCE FOR the controversial Russian fossil fuels due to the Ukraine North Sea extraction was unlikely
Cambo oil and gas field in the UK’s war has changed the landscape for to “materially affect global oil or gas
North Sea has been extended for a the oil and gas industry, and the UK prices, as the UK energy market is
further two years, reports Sky News. government has backed more domestic highly connected to international
The field, which is co-owned extraction as part of a new Energy markets and the potential supply
by Shell and Siccar Point Energy, Security Strategy. relatively small”.
attracted significant opposition from In a statement, a Shell spokesperson Pushing ahead with the government’s
campaigners while the government told Sky News: “The North Sea electric heat pump plans and
regulator considered whether or not to Transition Authority has awarded Siccar accelerating home insulation rates
grant a final permit to drill last year. Point Energy and Shell UK an extension would cut gas demand quicker than
In December 2021 Shell backed away to the underlying licences containing the proposed expansion of drilling in the
from the project before any decision Cambo field, which were due to expire North Sea, according to ECIU analysis.
was made, citing the potential for tomorrow (31 March 2022). Environmentalists say no new oil
delays and a weak economic case for “At this time, there is no change to and gas projects should be going ahead,
investment. our position of December 2021, but the while Oil and Gas UK say Cambo is
Since then, the scramble to get off extension to the licences will allow time needed to supply the UK’s energy.

NATIONAL GRID SELLS 60% STAKE IN GAS NETWORK the country,” Mr Pettigrew said.
“Alongside our plans to invest up to
result for all our stakeholders, £35 billion in energy infrastructure
including employees and customers,” over the next five years, the series of
said Chief Executive John Pettigrew. transactions announced last March
The consortium of buyers will strengthen our long-term growth
includes Australia’s Macquarie Asset prospects, and drive long-term value
Management and British Columbia for shareholders.”
Investment Management Corporation Macquarie’s Martin Bradley said:
T. SCHNEIDER / SHUTTERSTOCK.COM
from Canada. “The national transmission system is
Mr Pettigrew said that the new a critical enabler of the UK’s energy
owners have lots of experience transition, providing the flexibility and
owning big infrastructure and a “long- reserve energy needed in the electricity
term commitment to the UK”. system as the deployment of renewable
NATIONAL GRID IS SHIFTING ITS “I look forward to our partnership sources of generation accelerates.
FOCUS TOWARDS ELECTRICITY
and continuing to deliver safe and “However, if the UK’s net zero
NATIONAL GRID HAS sold a reliable gas service at the least cost to by 2050 target is to be met, the
controlling stake in its gas grid to a consumers,” he said. country must have a next-generation
group of global investors as it raises For National Grid this helps the transmission backbone to power homes
money to invest in electricity. business pivot towards electricity – and businesses with renewable energy.
The business said that it would where it sees its future. “Backed by our significant
pocket £2.2 billion in cash for 60 Even before it invests the money it investment, the transmission system
per cent of its gas transmission and gains from the sale, just the disposal alone will play a leading role in making the
metering unit, according to The takes its assets invested in electricity network ready for this transition.
Independent. from 60 per cent to 70 per cent. “In doing so it will support the
It is a significant deal for the “This transaction further enhances expansion of hydrogen’s role in the
company, which has for decades been our role in delivering the UK’s energy energy mix to deliver a competitive edge
responsible for the pipes that funnel transition, pivots our portfolio to the UK and its industry, while working
gas into homes across the UK. towards electricity, whilst ensuring closely with the government and Ofgem
“The announcement is a strong the security of the energy supply for to maintain security of supply.”

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21/04/2022 12:03
News.indd 2
News.indd 2 21/04/2022 12:03