Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

UPDATE 1-Britain's Cuadrilla extracts first shale gas at English fracking site

Published 03/11/2018, 12:49 am
Updated 03/11/2018, 12:50 am
© Reuters.  UPDATE 1-Britain's Cuadrilla extracts first shale gas at English fracking site

(Updates with details, background)

By Susanna Twidale

LONDON, Nov 2 (Reuters) - Cuadrilla extracted its first shale gas from its site in northwest England, it said on Friday, after it began fracking operations there just over two weeks ago.

Cuadrilla said the gas flows were small but coming at such an early stage of the project were evidence of the potential of the site.

"This is a good early indication of the gas potential that we have long talked about," Cuadrilla Chief Executive Francis Egan said in an emailed statement.

Fracking, or hydraulically fracturing, involves extracting gas from rocks by breaking them up with water and chemicals at high pressure.

The practice, which started at the New Road site on Oct. 15 has been halted and restarted twice since then after small earth tremors were detected. regulatory system calls for any fracking to be paused if any tremor of magnitude 0.5 or above is detected.

Cuadrilla said it plans to fully test flow rates from the current two exploration wells towards the end of 2018 and into the New Year to determine whether full-scale gas extraction would be viable.

Fracking is opposed by environmentalists and green groups who say extracting more fossil fuel is at odds with Britain's commitment to reduce greenhouse gas emissions.

But Britain's government is supportive of the industry and is keen to reduce the country's reliance on imports of natural gas, which is used to heat around 80 percent of Britain's homes.

The British Geological Survey estimates shale gas resources in northern England alone could contain 1,300 trillion cubic feet (tcf) of gas, 10 percent of which could meet the country's demand for almost 40 years.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Cuadrilla which is 47.4 percent owned by Australia's AJ Lucas AJL.AX and 45.2 percent owned by a fund managed by Riverstone, first extracted shale gas in England near the coastal town of Blackpool in the northwest in 2011, but it was stopped after causing a 2.3 magnitude earth tremor.

It said then that the quake was caused by an unusual combination of geological features, but it led to an 18-month nationwide ban on fracking while further research was carried out and a new regulatory system was implemented.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.