Shell to sell Bacton Gas Terminal and 11 offshore gas fields

The deal will see UK-based Viaro Energy acquire the facility as well as 11 of Shell's Southern North Sea gas fields off the east coast.

The gas-processing terminal and fields are currently operated by Shell through Nederlandse Aardolie Maatschappij (NAM), which is a joint venture between Shell and ExxonMobil.

Viaro Energy, which has a working interest in more than 65 fields in the North Sea, made the deal via its main operating subsidiary RockRose Energy.

It follows Shell's 2021 review of its portfolio in the Southern North Sea, when it decided to shift its focus to central and northern areas of the sea. 

Bacton Gas Terminal (Image: PA Media/Joe Giddens)

The transaction is subject to regulatory approvals and is expected to be completed in 2025.

Bacton Gas Terminal currently generates around 40pc of Britain’s electricity and it constitutes the main supply of gas for East Anglia's homes and businesses.

The sale comes at a time of growing uncertainty over the future of North Sea oil and gas, with questions remaining over the Labour government's plans for the sector.

The facility was visited by former prime minister Rishi Sunak last year who said it was the "hidden hero" of the UK energy sector, with hopes it could become a hub for the emerging hydrogen industry, which uses natural gas but is considered a cleaner form of energy.

Under Mr Sunak's plans, Bacton would be used for the production and distribution of hydrogen as well as a centre for 'carbon capture', a technology for storing harmful CO2 emissions. 

Rishi Sunak visited the plant last year (Image: PA Media/ Joe Giddens)

BACTON BACKGROUND 

The gas complex sits on the coast, just metres from the beach, on a site roughly 180 acres in size – around 120 football pitches. 

It opened in 1968, to handle the gas which was starting to be extracted from the North Sea in increasing volumes. 

Ever since, it has played a vital role not just in supplying the UK but also Europe, as the only two pipelines connecting Britain to the continent come ashore at the site. 

Bacton Gas Terminal (Image: PA Media/Joe Giddens)

Since the invasion of Ukraine, it has played an increasingly pivotal role in providing energy security for European countries, sending record amounts of gas across the North Sea to make up for reduced Russian supplies. 

In winter 2022, about 20.5 trillion cubic meters of gas were piped over to Europe, four times the typical volume, accounting for about a fifth of the continent’s gas stocks.