A DEAL that will see the first gas from a recentlydiscovered field piped directly to Teesside will reinforce the region’s position as a key hub for the industry, it was claimed last night.

Teesside Gas and Liquids Processing, a subsidiary of Teesside Gas Processing Plant (TGPP), yesterday signed an agreement with the owner of the Breagh field to process gas produced at its Seal Sands plant.

German energy company RWE won planning permission in June to build a pipeline connecting the plant with the gas field, 60 miles off the North-East coast. It is expected that 300 construction jobs will be created on the pipeline, along with 15 permanent jobs at the gas processing plant.

The first gas is expected to be processed at the plant, which is operated by PX Group on TGPP’s behalf, in mid 2012. TGPP chief executive Andy Heppel said: “We look forward to working with the Breagh owners to develop this significant North Sea gas discovery.

“This is a very exciting project for our company as it connects this new and undeveloped area of the North Sea to Teesside, and provides new gas and hydrocarbon feedstock to the UK and local industry.

“This further reinforces Teesside’s position as a key strategic hub in the UK’s gas and hydrocarbon network.

The project will also help to secure existing jobs and create local employment opportunities during the construction phase.”

Ralf to Baben, chief operating officer of RWE Dea, described yesterday’s agreement as another major milestone in bringing the Breagh gas field into production, adding: “We are happy to enter into this long-term relationship with this highly regarded gas processing terminal and its operator.”

The Breagh field, on the Dogger Shelf, is one of the North Sea’s largest gas discoveries in recent years. It is operated, and 70 per cent owned, by RWE with Canadian oil and gas firm Sterling Resources owning the remaining 30 per cent.

As well as the pipeline, the project will involve the construction of an offshore platform.

Gas will be brought ashore at Coatham Sands, Redcar, where it will be piped to Seal Sands, for processing.

It will then be sent either to the national gas transmission system or local industrial users, with natural gas liquids, removed as part of the processing, delivered to firms on Teesside.