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Energy

UK gov’t puts fracking debate back on the front burner

The UK shale gas industry appeared to be given a leg-up as new rules from the government are poised to fast-track so called 'fracking' applications.

The UK shale gas industry appeared to be given a leg-up as new rules from the government are poised to fast-track so called 'fracking' applications.

Fracking is a method of firms exploiting the rich potential of shale gas under the UK using special fluids that is pumped underground to split up the rocks.

It has attracted much opposition among environmental campaigners.

Now the Tory government appears to be putting the debate right back on the front burner with new policy.

Media reports at the weekend described how plans are afoot to potentially allow the government to step in to the planning process and take control away from local authorities on such applications.

Perhaps the most high profile recent planning case was Lancashire County Council's rejection of two fracking applications in Lancashire made by Cuadrilla - partly owned by energy giant Centrica (LON:CNA).

These refusals were remarkable in that planning officers had actually, ahead of meetings, recommended the relevant committees grant approval.

Cuadrilla is now appealing the Lancashire decisions.

Now, new guidance to be issued this week is aimed at strengthening the government's hand in the planning process..

Amber Rudd, the energy secretary, said the UK could not afford to miss out on billions of pounds of potential revenue fracking could bring and up to 60,000 new jobs.

Moreover, this week, the government's Department for Energy and Climate Change is set to publish the next winners in an auction for several shale exploration blocks.

Around 95 firms have applied for nearly 300 licences, it was reported.

Protesters. however, say the potential planning fast-track measures are a sign of desperation from the UK government and that they will fail in the face of huge public outcry.

IGas (LON:IGAS) is among the early movers in Britain’s nascent shale gas sector and has a significant acreage position across the North West and the Midlands.

It said in June it was preparing to submit planning applications for several well sites. Shares rose 6.38% to 25p each today.

Meanwhile, last month, an independent task force, commissioned by the government, concluded that fracking could be carried out safely in the UK.

Lord Chris Smith, chairman of the task force, said: “Only if the drilling is done properly and to the highest standard, and with rigorous regulation and monitoring, can shale gas fracking be done safely for local communities and the environment.”

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