The government has approved two new business energy developments at gas fields in Laggan and Tormore.
The £2.5 billion project will be spearheaded by Total and Dong Energy, who will jointly develop the two sites, which lie 600 metres below water.
Both fields are expected to provide energy suppliers with more than one trillion cubic feet of gas during their lifespan. The construction will create up to 500 jobs in Shetland and a total of 2,100 posts during the project's lifetime.
Business secretary Lord Mandelson said the project was made possible by the government's recent tax measures to develop deepwater gas fields.
"I congratulate everyone involved for their hard work and for bringing on stream this very ambitious and worthwhile project," he commented.
Roland Festor, Total's managing director added that despite the complexity and potential risks of the project, it signals the energy company's firm commitment to securing the future of the UK's domestic energy supplies.
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