The U.K. government has approved the Jackdaw offshore gas field operated by Adura, a joint venture between Shell and Equinor, clearing the way for the project to begin supplying gas within weeks.
The decision, announced by Adura on October 21, follows a regulatory review by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), including public consultation and an assessment of environmental evidence.
Adura said the $2.8 billion (£2.1 billion) Jackdaw development could produce enough gas at peak output to heat the equivalent of approximately 1.4 million UK homes.
The approval allows the project to move towards supplying gas to UK households, power stations and businesses, with the company expecting supplies to begin within weeks.
"This decision is an important and positive step forward for Adura and for the future of UK energy. It provides certainty to the businesses and skilled workers already delivering the project and demonstrates the value of pragmatic, evidence-led decision-making," said Neil McCulloch, CEO of Adura.
The company is also awaiting a regulatory decision on the Rosebank offshore development, which follows Jackdaw in the approval process.
Adura said Jackdaw and Rosebank represent a combined investment of $14.4 billion (£10.8 billion), with more than three-quarters of that amount expected to be spent in the UK.
According to the company's estimates, the two projects could generate $38.3 billion (£28.7 billion) in gross value added over their producing lifespans, support more than 3,500 jobs during peak construction and sustain approximately 880 jobs during production.
The developments are also expected to create at least 125 apprenticeships.
At peak production, Jackdaw and Rosebank could together account for approximately 10% of the UK's domestic gas production and 10% of oil output from the UK Continental Shelf, according to Adura.
While Jackdaw has received approval, Rosebank remains subject to a separate regulatory decision.