The ceremonial first cut of steel for the £1.4 billion (GBP) Cygnus gas field project was celebrated today by operator GDF SUEZ E&P UK and partners Centrica Energy and Bayerngas at Heerema Fabrication Group's Hartlepool yard in North East England.

Mr Stuart Drummond, mayor of Hartlepool, performed the first cut of the steel, which will be used to build the 1,600 tonne Cygnus Alpha Wellhead Platform, the first of four platforms for the Cygnus field - the largest gas discovery in the Southern North Sea in the last 25 years.

After project sanction in August 2012, GDF SUEZ E&P UK placed a frame contract with Heerema Fabrication Group’s Hartlepool yard with the intent to place future call-off orders for the fabrication and commissioning of three of the four topsides and a compression module for the Cygnus development. The project is expected to create more than 1 million man hours of fabrication and around 450 people working on Heerema's Hartlepool site for the project during 2014

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Approximately £1.4 billion (GBP) is being invested in the Cygnus project, with the intent to maximise UK-based company content, creating 4,000 direct and indirect jobs during the construction phase.

Stuart Drummond, Mayor of Hartlepool, said: "I'm delighted that Heerema have once again secured a major international frame contract that will both safeguard and create hundreds of jobs in Hartlepool. It shows that, despite the global financial crisis, Hartlepool is well and truly open for business and there is great confidence in the town and our ability to deliver."

Jean-Claude Perdigues, Managing Director, GDF SUEZ E&P UK said: "The ceremony marks a major milestone in the flagship Cygnus project which is bringing substantial jobs and investment to the UK and notably to the Hartlepool area. Construction work has started swiftly and it is a privilege to witness the cutting of first steel for the Cygnus development, which is making such a positive contribution to the UK energy industry and wider economy."

(CD)