A MAJOR North Sea gas project is supporting hundreds of manufacturing jobs and generating almost £90m in the North-East economy.

A report published today by Oxford Economics has revealed that, before gas production even begins, the Cygnus project is creating and securing nearly 400 jobs in the North-East

Three platforms for Cygnus are being built at Heerema Fabrication Group in Hartlepool, making it the third consecutive offshore project by Centrica Energy to involve major construction work in the town.

At its peak the Cygnus project, which was given the go ahead in 2012, will produce enough gas to meet the demand of 1.5 million UK homes.

Adrian Cooper, chief executive of Oxford Economics, said: “The Cygnus North Sea project is already supporting valuable income and employment opportunities in the North-East, in Scotland and throughout the UK, even though the gas production process itself has yet to start.

The benefits are being felt not just by those directly involved in the design and build of the required infrastructure, but also by suppliers of goods and services of all kinds to those contractors in turn.”

Cygnus is the largest southern gas field in the North Sea to be approved and developed in the past 25 years. The project is worth about £1.2bn, and will support 4,800 jobs nationally during its five-year construction period.

Around 95 per cent of the expenditure associated with the development of the field will be spent with UK based businesses, say ministers.

Colette Cohen, the senior vice-president for the UK and the Netherlands at Centrica Energy, said: “This report underlines how significant an impact the Cygnus project is having across the UK both in terms of investment and jobs, as well as strengthening our security of gas supply. This is a great example of what can be achieved when we invest in skilled people across the UK, creating thriving energy coasts and securing gas for the UK.”

Ruud Zoon, managing director, GDF SUEZ E&P UK Ltd said: “As operator of the Cygnus field, we are very pleased with the success of UK-based companies in securing over 80 per cent of the contract work in competitive tender. This is testament to the technical and commercial excellence of the UK supply chain.

"Good progress is being made on the project with the 2014 installation campaign now complete and drilling activities underway.”

Gerry Harrison, managing director of Bayerngas UK, said: “This report highlights the significance of our oil and gas industry and its effective relationship with the UK supply chain. We are delighted to be part of the Cygnus project and will continue to invest, with our partners, in other opportunities offshore UK.”