British Gas owner, Centrica, is in ongoing negotiations with Cuadrilla Resources about acquiring a stake in the Bowland shale in the north-west of England.
Britain’s leading fracking company, Cuadrilla, is conducting the talks with its existing shareholders, Australia-based mining firm AJ Lucas and private equity firm Riverstone Holdings, and Centrica, reports the Guardian.
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Another shale operator, IGas, said it holds more resources of shale gas in Britain than previously estimated, which could meet gas consumption in the country for decades.
In January, Centrica said shale gas would not be a game changer in the UK like it was in North America and quashed speculation that it might start shale gas drilling soon.
The entry of a major gas company like Centrica is expected to enhance the shale gas sector in UK, as the sector includes relatively small companies with less operational experience.
The shale gas boom has been mainly driven by widespread use of techniques such as horizontal drilling and fracking, or hydraulic fracturing.
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By GlobalDataMany environmentalists are opposing fracking as it uses a mixture of chemicals to break up the shale rock and extract the gas.
Fracking is a technique in which a large amount of water is mixed with sand and chemicals and injected at high pressure into faults to release petroleum and natural gas such as shale gas, tight gas, and coal seam gas.
In March 2013, the UK Government introduced a series of new tax breaks in its 2013 budget to encourage shale gas exploration in the country.
Image: Centrica plans to buy a stake in the Bowland shale in north-west of England. Photo: Courtesy of Daniel Foster.
