Concern at bid to electrify oil and gas sites

Operators have voiced concern as the North Sea Transition Authority (NSTA) pushed ahead with plans to require developers to electrify their oil and gas assets.

The NSTA released its OGA Plan yesterday following public consultation and feedback.

Under the strategy, new developments producing oil after January 1 2030 must be either fully electrified or run on alternative low carbon power with near equivalent emission reductions.

The rules for new developments that will produce oil before January 1 2030 are slightly looser, as they should be ready for electrification when they come online.

In addition, existing assets defined as high emissions intensity assets would need to agree dates to halt production.

But there are fears that the electrification plans could drive away investment and force existing North Sea assets to close early.

Brindex chairman Robin Allan said that, while the group agrees with the plan’s goal of reducing greenhouse gas emissions, “the impacts of no new investment are stark”.

He said: “Lower levels of oil and gas production will weaken the UK’s energy security and kill off well-paid and skilled jobs in communities which have helped develop UK energy for decades.”

The plan was released amid concerns that operators are not going to hit emissions reduction targets.

The NSTA hailed industry efforts in cutting production emissions by nearly a quarter since 2018 and halving flaring from 2018 to 2022.

But North Sea oil and gas production still accounts for around 3% of total UK greenhouse gas emissions, it noted.