NEARLY £90m is being added to the North-East economy thanks to a massive contract in Hartlepool to build platforms for the offshore industry.
The economic impact of the Cygnus gas project in the North Sea has been calculated in a new report released today.
A report by leading economics consultancy Oxford Economics has found that, before gas production even begins, Cygnus is creating and securing nearly 400 jobs primarily in Hartlepool.
That’s down to the work taking place at the Heerema Fabrication Group in the town.
The Cygnus site is operated by business partners GDF SUEZ, Centrica and Bayerngas. At its peak, the Cygnus field will produce enough gas to meet the needs of 1.5 million UK homes.
Further analysis shows;
•The project will add £1.29 billion to the UK economy and support more than 4,820 skilled jobs during its five-year construction period.
••It comes as drilling begins at the Cygnus field.
•Economic benefits will be felt across the UK, in particular throughout Scotland and North-East England where 19,000 tonnes of offshore infrastructure is being built at yards in Hartlepool, Fife and the Highlands.
•In our region, Cygnus will bring nearly £90m to the local economy and secure over 400 jobs. Three platforms for Cygnus are being built in the town, making it the third consecutive offshore project by Centrica Energy to involve major construction work in Hartlepool.
Adrian Cooper, chief executive of Oxford Economics, said: “The Cygnus North Sea project is already supporting valuable income and employment opportunities in the North East, in Scotland and throughout the UK, even though the gas production process itself has yet to start. The benefits are being felt not just by those directly involved in the design and build of the required infrastructure, but also by suppliers of goods and services of all kinds to those contractors in turn.”
Colette Cohen, senior vice-president for the UK and the Netherlands at Centrica Energy, said: “This report underlines how significant an impact the Cygnus project is having across the UK both in terms of investment and jobs, as well as strengthening our security of gas supply. This is a great example of what can be achieved when we invest in skilled people across the UK, creating thriving energy coasts and securing gas for the UK.”
Ruud Zoon, managing director of GDF SUEZ E&P UK Ltd said: “As operator of the Cygnus field, we are very pleased with the success of UK-based companies in securing over 80 per cent of the contract work in competitive tender.”
Gerry Harrison, managing director of Bayerngas UK, said: “This report highlights the significance of our oil and gas industry and its effective relationship with the UK supply chain. We are delighted to be part of the Cygnus project and will continue to invest, with our partners, in other opportunities offshore UK.”