UK government approves shale fracking

The government approved horizontal fracking for the first time as a Lancashire council appeal against it was overturned on Thursday, giving a boost to companies planning similar projects in the country.

Communities secretary Sajid Javid approved plans for fracking, or hydraulic fracturing, at privately owned Cuadrilla Resources’ site at Little Plumpton in Lancashire, a decision which will mean that British shale rock will be fracked horizontally for the first time, which is expected to result in higher gas output.

Javid deferred a decision on a second site at nearby Roseacre Wood.

Since 2011, councils and campaigners had obstructed plans to frack in Lancashire when Cuadrilla Resources set-off a minor earthquake at another site in the area, at Weeton.

Campaigners protested against the fear of pollution in the water supply, excessive noise and increased traffic and had environmental concerns.

Meanwhile, Nottinghamshire county council postponed making a decision whether to approve drilling by AIM-listed IGas Energy till the 15 November after late intervention by environmental activist group Friends of the Earth, who also forced a delay for North Yorkshire to approve a bid by privately owned Third Energy till 2017.

IGas Energy is the largest British shale player by gross acreage and has carried out $225m of total gross shale exploration work over its own properties and those of its partners, Total, ENGIE E&P and INEOS.

The north, the Midlands and the southeast of England have shale gas reserves, which fracking can be used to release gas and oil trapped underground by pumping big amounts of water, sand and chemicals in the ground at pressure.

The decision has been condemned by the Liberal Democrats and the Green party, while Labour previously said they would ban fracking if they came to power.

The government had been trying to bolster the shale gas industry as it said it would craet jobs and replace some gas imports.

Claire Jakobsson, head of energy and climate policy at EEF, the manufacturers’ organisation, said Thursday's approval could be a significant step forward for the country’s future in shale.

“Following today’s decision, we could see production start within the next eighteen months. It’s hoped that this development will provide vital information on the longer-term prospects for a UK shale industry. Approval of the second application, currently under consideration, would help to build this picture further and we hope the green light will be given for this too in due course.

“Shale gas has the potential to deliver significant economic benefits to the UK, from more affordable energy to security of supply, through to jobs in the energy and manufacturing sectors.”