IGas welcomes review on shale gas extraction

IGas plc said it welcomed the Government’s call for a scientific review of shale gas extraction by the British Geological Survey.

OPPORTUNITY

The department for business, energy and industrial strategy (BEIS) today announced it had commissioned a scientific review, with a report expected by the end of June 2022.

IGas chief executive Stephen Bowler said that the Government had made a “significant development”.

“We welcome the opportunity to demonstrate how shale gas can provide safe, secure and affordable energy for the UK.

“With government support to rapidly accelerate the development of this strategic national resource, the IGas board believes it can make this vital, indigenous supply of energy available to British consumers and businesses in a short timeframe.

“Gas has a key role to play to ensure our future energy supply is secure, affordable and as low carbon as is economically possible.

“UK shale gas resources can replace imports, reduce prices, boost the country’s tax revenues, and lead to job creation in areas where they are most needed to support the Government’s levelling-up agenda.”  

CUADRILLA

The news follows the NSTA’s decision on 31 March 2022 to allow Cuadrilla to keep its two Preston New Road wells and Elswick well in Preston, Lancashire.

NSTA said that it had looked carefully at the application, alongside recent developments, and agreed to withdraw the requirement to decommission the wells by the end of June. 

Cuadrilla has until the end of June 2023 to evaluate options for the Preston New Road and Elswick sites. 

MORATORIUM

In 2019, the Government imposed a moratorium following reported earthquakes from Cuadrilla Resources’ operations in Lancashire.

Additionally, the North Sea Transition Authority (formerly the Oil and Gas Authority) found it impossible to accurately predict the probability or magnitude of earthquakes linked to hydraulic fracturing.