Centrica ‘in Cuadrilla shale gas talks’
THE owner of British Gas, Centrica, is understood to be close to buying into Cuadrilla Resources, the shale gas company that is active in Lancashire.
According to the Financial Times Centrica is one of a number of multi-nationals that is interested in acquiring a stake in the business which was the first to explore Lancashire’s shale gas potential.
Centrica is said to be interested in buying into Cuadrilla’s Bowland Shale licences.
Private equity firm Riverstone Holdings holds 41% of Cuadrilla, with AJ Lucas, the Australian engineering group, owning the rest.
A recent report from the Institute of Directors said the UK shale gas industry could support 74,000 jobs, and the supply of domestic gas could cut imports from 76% to 37% by 2030.
There are large shale gas reserves underneath Lancashire but the hydraulic fracturing extraction process – or fracking – which involves pumping large amounts of water underground at high pressure, has many opponents.
Environmentalists claim it can pollute the water table and last year the government imposed a temporary ban on fracking after a minor earthquake in Blackpool was linked to Cuadrilla’s operations. This was lifted in December and Chancellor George Osborne is now promising tax incentives to support the industry.
