Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 2-Cuadrilla to restart fracking at British site

Published 12/07/2019, 12:26 am
UPDATE 2-Cuadrilla to restart fracking at British site
NG
-

(Updates throughout with CEO, green group comment)

By Susanna Twidale and Lefteris Karagiannopoulos

LONDON/OSLO July 11 (Reuters) - British shale gas company Cuadrilla said on Thursday it would restart fracking at its Preston New Road site in Britain in the third quarter of 2019 and plans to use a thicker fracking fluid to help reduce earth tremors.

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

Operations at the first well at the Preston New road site in Lancashire where halted several times last year because of minor seismic events. British regulations demand work be suspended if seismic activity of magnitude 0.5 or more is detected. CEO Francis Egan said he hoped the use of a thicker fracking liquid would help to cut down on seismic events at the second well.

"We have in effect increased the concentration of the fluid so essentially there is more sand and less water," he said in an interview with Reuters.

"We may still have events reaching the 0.5 limit but hopefully not as many."

Egan said the fluid alterations had been approved by Britain's Environment Agency.

Cuadrilla and chemical firm Ineos, which has the largest shale gas licence acreage in Britain, have called on the government to change seismicity regulations which the companies say have threatened to stall the industry's development.

The government has said it has no plans to change the rules. is opposed by environmentalists who say extracting more fossil fuel is at odds with Britain's commitment to reduce greenhouse gas emissions.

"At a time when the government has declared a climate emergency, the last thing we should be doing is starting an industry that extracts gas," said Jamie Peters, a Friends of the Earth campaigner.

Britain last month became the first G7 country to adopt an ambitious law to reach net zero emissions by 2050. move will require much less gas-fired power generation and a move away from domestic natural gas, currently used to heat around 80% of the country's homes.

But Egan said the fracked gas could become a feedstock to create hydrogen and help the country meet its climate target.

"The CCC (committee on climate change) report was clear hydrogen will be needed for net zero and surely it's better to use domestically produced gas for this than imports of LNG (liquefied natural gas)," he said.

Britain's climate advisers, the CCC, said in a May report Britain will need to begin using low-carbon hydrogen in industry and for home heating to help cut its emissions and meet the target.

Subject to regulatory approvals Cuadrilla said it would complete the programme of fracking and testing equipment at the second well by the end of November.

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.