The Chancellor of the Exchequer, the Rt Hon George Osborne MP, has visited a fabrication yard in North East England which is creating 200 new jobs – part of 4,000 expected across the country - building offshore platforms for the major Cygnus gas project.

The project was made possible in part by the Government’s decision to offer a tax allowance for large shallow water gas fields.

The Hartlepool yard, run by Heerema Fabrication Group, is one of the first to benefit from the recent announcement by GDF SUEZ, operator, and partners Centrica and Bayerngas to sanction the £1.4 billion Cygnus project.

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The Chancellor met with teams currently working at the Hartlepool site to understand more about the work that would be involved. He also discussed the next phases of the Cygnus project with Senior Partnership Management on this inaugural visit to the yard.

Heerema will build three topsides for four offshore platforms for the Cygnus field. Construction work at the site is expected to begin before the end of the year, with detailed design and procurement already underway, as the site prepares to cut first steel on this significant UK development. By 2014, an average of 450 people will be working on site for the Cygnus project alone.

The Cygnus Partnership is led by operator GDF SUEZ E&P UK Ltd (38.75%) with partners Centrica (48.75%) and Bayerngas (12.5%) who were also on site to welcome the Chancellor.

Mr Osborne said: "I am delighted to officially mark the go-ahead for the £1.4billion Cygnus project, which will deliver 4,000 skilled jobs. It is an example of the Government helping the private sector in the North East create sustainable jobs and lasting industry, replacing the unsustainable public borrowing of the past."

(CD/GK)