South Africa has put an end to a ban on hydraulic fracturing or fracking, the controversial technique used to extract shale gas.
The ban was imposed in April last year on the semi-arid Karoo region, where there are reportedly huge reserves trapped in the shale formations below the earth’s surface.
The easing of regulations opens the door to majors who were previously looking to move into the region.
Oil giant Shell (LON:RDSA) and mining heavyweight Anglo American (LON:AAL) were two of the companies seeking licences in Karoo before the ban.
Reports suggest Karoo could be sitting on enough gas to fuel the country for as many as 400 years.
South Africa’s estimated 485 trillion cubic feet of recoverable shale gas reserves are the fifth largest in the world.
Fracking involves injecting fluid into cracks in the rock formations at high pressure and has seen stout opposition in the form of environmental campaigners.
It has been linked with a number of environmental impacts, including groundwater contamination as well as risks to air quality.
Shale gas has become an increasingly important source of natural gas, especially in the US.
The US government estimates that by 2035, 46 per cent of the US’ natural gas supply will come from shale gas.