BG GROUP announced yesterday that it had made what is likely to be the biggest North Sea gas discovery for five years.

In a move that will lengthen the likely availability of domestic energy sources, the natural gas explorer and producer called the the discovery “substantial” and said that it could be developed quickly because it is close to existing infrastructure.

BG Group said that the discovery, the biggest since the Buzzard oil field was found in July 2001, could have recoverable reserves of between 100 and 275 million barrels of oil equivalent. Buzzard, which comes on-stream later this year, has reserves of 500 million barrels.

BG has a 30.5 per cent interest in the discovery, which it has made with its partners ConocoPhillips and ENI.

Mark Carne, executive vice-president, Europe and Central Asia, for BG Group, said: “This is one of the largest recent North Sea discoveries and represents a highly attractive near-term, near-infrastructure project.

“This is BG’s fifth discovery in the North Sea in the past 12 months. It once again reinforces the prospects for our UK ex-ploration and production business and shows the continued prosperity of the North Sea.”

BG and its consortium partners will now conduct further studies to ascertain more precisely the extent of the field. The group hopes to sanction the field in 2007 and to begin production in 2010.

Rhodri Thomas, an analyst with Wood Mackenzie, said: “If this field lives up to the press release, it is a very positive story for BG Group and for the North Sea.”

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