BP is planning to sell part of its equity in two flagship carbon capture and storage (CCS) projects in north‑east England, marking a further step away from its earlier low‑carbon strategy, according to a report by The Guardian newspaper.
The company will reduce its stakes in Net Zero Teesside (NZT) – a gas-fired power plant with carbon capture ambitions – and the Northern Endurance Partnership (NEP), the CO2 transport and storage network serving Teesside and the Humber. Both projects are central to the UK’s East Coast Cluster and wider industrial decarbonisation plans.
BP said the projects have now reached financial close and entered construction, making it an appropriate time to bring in new partners. However, it has not disclosed how much equity it plans to sell or whether negotiations with buyers are underway. Existing partners include Equinor (in both NZT and NEP) and TotalEnergies (in NEP).
The move reflects a broader strategic reset under new CEO Meg O’Neill, who took over in April. Her approach signals a shift back toward BP’s core oil and gas operations, following the dismantling of the “gas and low‑carbon” division created under former CEO Bernard Looney, who had positioned CCS as a key element of BP’s transition strategy.
BP’s recalibration also comes against a challenging UK policy backdrop, including a ban on new North Sea exploration licences and a stringent fiscal regime for oil and gas producers. At the same time, the company has faced political scrutiny over windfall profits, with Energy Secretary Ed Miliband publicly criticising BP’s earnings.
While construction of NZT and NEP is continuing, BP’s partial exit raises questions about investor confidence and delivery timelines for the UK’s CCS ambitions. The future pace of these projects will likely depend on whether new investors step in to sustain momentum in the Teesside and Humber industrial clusters.
