Shale gas supply hub could net £30bn for North

A CO-ORDINATED and strategic approach to shale gas supply is required if the North is to benefit from a potential £30bn in its economies, a report published today says.

It argues the development of a supply chain to support the industry could support 13,000 jobs – more than double the amount that would be created without a supply hub.

The document, Shale Gas – Creating a Supply Hub for the Bowland Shale, is published by AMION Consulting and commissioned by Manchester-headquartered Peel Gas & Oil.

It is being launched today in Birmingham at Shale World – the UK’s biggest shale gas conference.

The report extends the 2014 AMION study into the potential impact of shale gas development in the Ocean Gateway (Liverpool to Manchester) area to consider the potential supply chain benefits across the entire Bowland Shale which covers the Midlands and the North of England.
 
The figures are based on the development of 100 well pad sites in the Bowland Shale, covering the Midlands and North of England.

It is estimated that developing the sector will generate a spend of around £30bn up to 2048.

The report also identifies that the Bowland Shale, and in particular the Ocean Gateway area stretching from the port of Liverpool to Manchester, could become a UK and international ‘centre of excellence’.

Peel Gas & Oil managing director, Myles Kitcher, said: “Creating a prosperous supply chain to service the Bowland Shale could be transformational in driving the Northern Powerhouse economies.

“From cementing services and steel supplies to water management and infrastructure, the opportunities are abundant.”

“The findings of this report demonstrate the huge benefits that are on offer but we need to act quickly or we risk losing out to other countries which are already active in the sector.

“By clustering activities together we have the opportunity to create an international centre of excellence for the industry.”

Kitcher said it was estimated there was 1.3 trillion cubic feet of shale gas available in the Bowland Shale region.

“If only 10% of that is accessed, it will supply the UK for the next 40 years,” he said.

Kitcher said the shale gas industry was unfazed by the potential uncertain outcome of the General Election on May 7 because none of the major parties had come out against it.

“The only party opposed to it are the Greens,” he said.
“It’s up to us to work with the public and private sectors to make sure we deliver shale gas in a safe and secure way.”

Robert Hough, chair of Liverpool City Region Local Enterprise Partnership (LEP), said: “We welcome this report as it helps to highlight the potential significance of the Shale Gas industry for local businesses.

“It is, in fact, an area the LEP itself has been giving consideration to and indeed we are currently working with partners to evaluate the potential for the Liverpool City Region economy to benefit from shale development.”
 
Mark Whitworth, Peel Ports CEO, said: “Opportunities to grow the economy of the North of England need to be embraced, and the new report by AMION Consulting has identified the positive impact that a supply hub in the Bowland Shale will have on job creation and investment to the area.

“Peel Ports has extensive experience of handing steel, aggregates and mechanical items as a terminal operator.

“With the strategic assets and infrastructure already in place in the region, we are best placed to support the development of a supply chain for the industry and help make the most of the Bowland Shale for the benefit of the North.”

The report highlights a delivery strategy for the creation of a supply hub, including attracting major suppliers to the hub area; building a pipeline to link well pad sites to energy intensive industries; and investment in research and skills development.
 
Part of the privately owned Peel Group, Peel Gas & Oil was recently launched to act as a strategic development partner for current and prospective onshore license holders.

The Peel Group has a unique range of assets to provide critical port services; road rail and water networks and land and property within easy access of the identified regional licence areas.