PLANS to locate a new centre of engineering excellence in the North-East have been described as ‘very logical’ by an energy industry expert.

George Rafferty, chief executive officer of NOF Energ, the country’s leading energy sector supply chain membership organisation representing 420 companies, which is based in Durham, welcomed the forthcoming arrival of subsea technology in the region.

The £7m Neptune National Centre will be created on the River Tyne in Newcastle.

He said: “It’s a very logical decision to locate this subsea centre in the North-East.

“The region has one of the most vibrant subsea sectors in the UK made up of around 100 companies, which turnover more than £1bn.

"These companies are at the forefront of technological developments, which enhance operations across the energy and telecoms industries.”

The centre will be built on the north bank of the river on Neptune Energy Park, part of Shepherd Offshore.

Mr Rafferty said: “The subsea sector is one of shining lights of this region’s economy and demonstrates the evolutionary process industry has enjoyed in the North East. The creation of this centre will be the next chapter of the region’s industrial story.”

It is billed by Newcastle University, which is providing funds for the scheme, as a centrepiece for economic revival.

The project, also supported by Newcastle City Council, includes plans for a hyperbaric chamber capable of testing technology and materials at temperatures and pressures equivalent to those found at the deepest ocean depths.