Page 9 - Gi flipbook March 2018

Blow to fracking firms as fracturing consent.”
Third Energy said: “Our
UK insists on financial checks annual accounts are being
finalised and we will
now be working with the
Infrastructure and Projects
FRACKING COMPANIES until Third Energy submitted companies seeking consent, Authority and the Oil and Gas
MUST undergo financial overdue accounts and the such as Cuadrilla and Ineos, Authority towards achieving
health checks if they Treasury had assessed its adding an extra hoop for hydraulic fracturing consent
want to win a green financial resilience, including frackers to jump through. from the Secretary of State.”
light for their operations, the firm’s ability to clean Clark said: “The Fracking companies have
the Business Secretary up the site afterwards. government considers already been delayed by
has said, as the industry The operating company, that the financial resilience new regulations imposed by
faces another barrier to Third Energy UK Gas, has of a company wishing to government in recent years,
exploration in the UK. overdue accounts for the hydraulically fracture is in the wake of a moratorium.
The decision comes period ending 31 December a relevant consideration. It is not clear how serious
after a Barclays-backed 2016. They were due last As a matter of policy, we an impediment the new
company hoping to be September. will therefore look at the financial tests will be.
the first to frack in the UK Clark said the accounts financial resilience of all One shale industry source
for seven years suffered would inform his decision companies wishing to carry said: “Until we know what
a blow when Business on whether to give the out hydraulic fracturing the process is and what
Secretary Greg Clark said company the go-ahead, as operations alongside their [the government] need, it’s
he was withholding consent he conceded the firm had application for hydraulic hard to know the impact.” ■
because of the state of its passed 13 other technical
accounts, according to The tests. Fracking involves
Guardian. pumping a mixture of CAUDRILLA
Third Energy is ready water, chemicals and
to start extracting gas at sand underground at high
Kirby Misperton, in North pressure to fracture shale
Yorkshire, and is awaiting rock and release trapped gas.
permission from Clark. Clark added that new
But Mr Clark said no financial checks would A fresh blow to fracking firms
decision would be made now be applied to other

Gas market shock forces ministers gas security is a major step-
The fresh approach to
to review UK’s supply policies change for the government,
which in the past has
focused on the country’s
GOVERNMENT market, driving prices to group of concerned energy ability to import gas when
MINISTERS WILL multi-year highs. companies and trade unions needed, but has ignored
undertake a fresh review of The UK gas price rose that the government the crippling cost of relying
the UK’s gas supplies after to its highest level since would turn its attention to on foreign sources when
major disruptions late last 2011 after an explosion in concerns over the recent market prices spike.
year ripped through the Austria. This compounded gas market shocks. The regulator has also
disruption following Mr Harrington’s letter doggedly countered
The gas market has outages in Norway and a said his department would concerns over the UK’s gas
experienced a shock crack in the country’s main “comprehensively test our supply security by focusing
North Sea pipeline system. assumptions” built on past on physical gas flows into
Energy ministers and reviews, which concluded the British gas grid rather
regulators have since faced that the UK’s gas system than the price shouldered
growing industry calls to was secure due to the by consumers.
review their stance against variety of import sources It has retained this focus
building new gas storage available. despite historic market
sites amid warnings that He added that his officials price spikes and the
price shocks are likely to were currently working “to collapse of two energy
worsen as the country’s gas develop projects building suppliers this winter.
reserves dwindle. on the conclusions of the UK gas futures are a third
In a letter, seen by recent strategic assessment, higher compared to the
The Sunday Telegraph, with gas price security situation two years ago, in
Energy Minister Richard featuring prominently in part driven higher by the
Harrington assured a their planning”. rally in global oil prices. ■

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News.indd 4 15/02/2018 14:25