Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the potential for repurposing North Sea oil and gas infrastructure for carbon capture and storage, and what financial or regulatory incentives exist to encourage operators to pursue this option instead of full decommissioning.

The Government’s consultation in 2019 on the ‘re-use of oil and gas assets for carbon capture, usage and storage projects’ concluded that there is the potential for significant cost savings for some CCS projects which can re-use appropriate oil and gas infrastructure.

The Government has set out how change of use relief can be issued for certain re-purposed assets. Under this regime, oil and gas companies will be relieved of their decommissioning obligations for repurposed assets if certain conditions are met. Secondary legislation to clarify this process is being developed and is expected to be introduced in due course.