Centrica moves on shale gas

Centrica, the owner of British Gas, has approached shale gas company Cuadrilla Resources to take a stake in its licences in Lancashire's Bowland Shale region.

Cuadrilla will start the hydraulic fracture, or fracking, of wells in the region next year after a series of environmental assessments have been completed. Centrica is understood to be the first major UK utilities company to make such an approach.

The talks follow a report earlier this month that fellow shale gas explorer IGas had underestimated the amount of shale gas to be tapped into in its licence area of Cheshire.

According to IGas, there could be up to 170 trillion cubic feet of gas in the areas it is licensed to explore in territories in northern England.

Previous estimates from IGas were set at just nine trillion cubic feet of shale gas, but estimates have now been boosted with the company setting the volume of shale gas at anything between 15.1 trillion cubic feet and 172.3 trillion feet nearly 20 times more than originally though at the top end of the spectrum.

Shale gas has courted controversy as part of the UK government’s energy plans, with environmentalists pointing to the possibility of earth tremors due to exploration into the energy source and many suggesting that resources to explore the gas supply would be better spent on renewable resources.

The UK’s current annual gas consumption is estimated to be three trillion cubic feet.

Cuadrilla Resources declined to comment on reports of an approach from Centrica.