The UK Government is preparing to approve the Jackdaw gas field east of Aberdeen within weeks, according to reports.
Government and industry sources have told the BBC that consent for the project could come as soon as mid-September, before Parliament breaks for party conference season.
The development, which is 99% complete, could begin supplying gas to UK homes this winter if approval is granted next month.
Jackdaw was originally approved in 2022, but that consent was ruled unlawful by the Court of Session after a legal challenge over the assessment of emissions created when its gas is ultimately burned.
Updated environmental assessments have since been consulted on, with the final decision now resting with Energy Secretary Miatta Fahnbulleh.
Adura, the Shell-Equinor joint venture which operates Jackdaw, says the field could meet around 6% of UK gas demand, while its output is also considered important to extending the life of other North Sea infrastructure, including the Shearwater hub.
The prospect of approval comes amid heightened concerns over UK energy security, with wholesale gas prices at a three-year high and Britain heavily reliant on imports.
Prime Minister Andy Burnham has recently called for a 'pragmatic approach' to domestic oil and gas.
'We won't be able to stop using oil and gas for some time. That's just a fact,' he said.
'The question is whether we can accelerate use of it so that we pay for the transition.'
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, said: 'Approval of Jackdaw would be a hugely important vote of confidence in the North Sea, protecting jobs, strengthening our energy security and ensuring more of the oil and gas we still need is produced here in the UK.
'But Jackdaw cannot be the end of the story. The same urgency must now be applied to Rosebank, another major project capable of supporting thousands of jobs, billions of pounds of economic activity and significant tax revenues for the Treasury. Together these projects represent 10% of our future gas supply at a point where we face a critical gas shortage.
'The Prime Minister has rightly called for a pragmatic approach to domestic oil and gas. Swift approval of both Jackdaw and Rosebank would put those words into action, but we also need the Government to address the punitive tax regime which is driving investment and jobs out of the North Sea.
'That means ending the Energy Profits Levy at the start of the new tax year and moving to the permanent, price-based Oil and Gas Revenue Levy. Taken together, those decisions would send a powerful signal that Britain is serious about backing its energy workers, its industrial base and its own energy security.'
The Department for Energy Security and Net Zero said it would not comment on speculation, but added: 'The North Sea remains a vital national asset and oil and gas will continue to play an important role in our energy system for decades to come - alongside transitioning to clean power to protect jobs and tackle the climate crisis.'
Source: Aberdeen & Grampian Chamber of Commerce
