Court overturns Shell and Equinor’s North Sea oil and gas field licenses

A Scottish court has overturned the licenses granted by British authorities to Shell and Equinor to develop two oil and gas fields in the North Sea, prompting a delay in their exploitation and requiring new environmental assessments.

Partagez:

The Court of Session in Scotland has overturned the licenses granted by British authorities to oil giants Shell and Equinor to develop two North Sea projects. The ruling came after Greenpeace and the Uplift organization contested the licenses, arguing that the approvals were granted unlawfully because they did not account for the indirect greenhouse gas emissions generated by the projects. The two companies will now need to submit new applications and reassess the environmental impact of their projects.

THE AFFECTED PROJECTS

The Jackdaw gas field, located 250 km off the Scottish coast, was granted its approval in 2022. Shell, the owner of the project, had invested £800 million in its development and planned to begin production this year. On the other hand, Equinor, operating the Rosebank oil field, had seen its project approved in 2023. This field is considered the largest untapped oil reserve in the UK, with reserves estimated at 300 million barrels of oil. Drilling was scheduled to start between 2026 and 2030.

REACTIONS FROM SECTOR STAKEHOLDERS

Shell expressed disappointment, highlighting that Jackdaw would be an essential contributor to the UK’s gas supply, capable of heating 1.4 million homes. The company called for swift action to allow operators to continue developing their North Sea projects. Equinor, for its part, welcomed the court’s decision, noting that the annulment would allow the company to continue working on the Rosebank project while awaiting new approvals and re-evaluating greenhouse gas emissions according to updated environmental guidelines.

POLITICAL AND LEGISLATIVE IMPLICATIONS

This ruling comes amid shifting political dynamics in the UK. The recently elected Labour government announced in August that it would not defend these projects in court. The Ministry of Energy Security and Net Zero has indicated it will revise its environmental guidelines in response to the Supreme Court ruling. Prime Minister Keir Starmer also reaffirmed the UK’s commitment to reducing greenhouse gas emissions by 81% by 2035 compared to 1990 levels.

The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.
After four years of interruption due to regional insecurity, TotalEnergies announces the upcoming resumption of its liquefied natural gas project in Mozambique, representing a $20bn investment.
The French group has acquired from PETRONAS stakes in several licences covering more than 100,000 km² off Malaysia and Indonesia, consolidating its Asian presence and its exposure to the liquefied natural gas market.
In response to rising summer electricity consumption, Egypt signs import agreements covering 290 shipments of liquefied natural gas, involving major international firms, with financial terms adjusted to the country’s economic constraints.
Egyptian fertilizer producers suspended their activities due to reduced imports of Israeli gas, following recent production halts at Israel's Leviathan and Karish gas fields after Israeli strikes in Iran.
A report identifies 130 gas power plant projects in Texas that could raise emissions to 115 million tonnes per year, despite analysts forecasting limited short-term realisation.
Japanese giant JERA will significantly increase its reliance on US liquefied natural gas through major new contracts, reaching 30% of its supplies within roughly ten years.
Sustained growth in U.S. liquefied natural gas exports is leading to significant price increases projected for 2025 and 2026, as supply struggles to keep pace with steadily rising demand, according to recent forecasts.