Expedited development of UK shale gas can help alleviate supply issues and high prices, whilst also reducing emissions versus imported gas, according to IGas Energy PLC (AIM:IGAS, OTC:IGESF) chief executive Stephen Bowler.
The IGas chief’s comments, in Wednesday’s full-year results statement, come a day after the UK government said it would launch a swift review of its stance on shale and fracking, which has been banned in the UK since 2019.
The British Geological Survey will carry out the investigation with a remit to look at new fracking developments since 2019 and also to examine if the modelling of shale geologies, to better predict earthquakes, has improved.
Bowler said: “Our decision to follow an energy diversification strategy was the right one. However, what is clear, is that fossil fuels and gas in particular, will remain a significant part of the energy mix as we move towards and beyond net zero.
“We welcome the government's scientific review of shale gas by the British Geological Survey, expected before the end of June 2022, and the opportunity to demonstrate how shale gas can provide safe, secure and affordable energy for the UK.
“We believe that expediting shale gas development will help alleviate the recent supply issues and high prices, alongside reducing emissions through to the replacement of imported gas."
IGas noted that it holds a significant portfolio of shale licences, totalling 292,100 net acres which have prospectively been estimated (in 2016) to host some 93 trillion cubic feet of gas initially in place.
The company said it would have the potential to supply enough gas to sustain 3mln homes within 12-18 months, with the right government support. This is based on the development of five well pads, each comprising up to 16 shale gas wells.
Egdon Resources PLC (AIM:EDR), another UK-listed firm with significant UK shale interests, in a separate statement described the new government review as “a logical and welcome move”.
“Gas heats over 80% of our homes and generates around 40% of our electricity and will continue to be an important part of our energy mix out to 2050 and beyond,” said Mark Abbott, Egdon managing director.
“UK shale gas could be a strategically important national resource with the potential to reduce the UK's growing reliance on gas imports, whilst reducing gas prices, improving our balance of payments, increasing tax revenues and creating skilled jobs whilst importantly also reducing the carbon footprint of the gas we all use."
Egdon’s portfolio spans some 151,742 net acres and was estimated to host 37.6 trillion cubic feet of ‘undiscovered gas in place’.