Tender launch for some five billion cubic meters of North Sea gas

Green organizations have attacked the government for climate hypocrisy. Now tenders for a new North Sea field are open.
Photo: Magnus Holm/Politiken/Ritzau Scanpix
Photo: Magnus Holm/Politiken/Ritzau Scanpix
BY RITZAU

The Danish Energy Agency has opened a mini-tender for the production and exploration of a new gas field in the North Sea, the agency announces on Thursday.

The tender has previously been met by critique from green organizations.

Interested oil and gas companies can apply for a permit for production in the so-called Elly-Luke area until October 15. It is estimated that there may be around 5.2 billion cubic meters of gas.

The potential of the field corresponds to approximately two and a half times the annual gas consumption in Denmark, which is considered relatively modest.

”The reason for the mini-round is that the Danish Energy Agency has received an unsolicited application in the area,” the agency writes.

It is the company BlueNord that has applied, the Ministry of Climate, Energy and Utilities stated in April. It was the first unsolicited exploration application in an unlicensed area of the Danish part of the North Sea since the North Sea Agreement.

The new licensing round has led to critique of the government for climate hypocrisy from green organizations as well as several opposition parties in the Danish parliament.

In 2021, the Social Democratic government co-founded an international alliance that calls for an end to oil and gas.

The 2020 North Sea Agreement also set an end date for oil and gas extraction in 2050.

The agreement left the door open for new licenses to be issued to ensure long-term conditions for the industry towards the end date.

Minister for Climate, Energy and Utilities Lars Aagaard (M) has rejected the idea of double standards. He believes that the new mini-tender is within the agreements.

”It does not change our climate goals, gas consumption or the end date for extraction,” he said in a press release in April.

”The government’s target of 100% green gas by 2030 remains unchanged. In return, potential new gas production will contribute to Europe’s security of supply.”

The Danish Energy Agency has estimated that potential production could start in four to six years. It could extend 15 years ahead and be completed by 2050.

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