A huge gas field has been discovered under Lincolnshire with the ability to fuel the country for a decade, it has been reported.
Reaching out to Egdon Resources, the energy firm behind the discovery in Gainsborough told Business Link that the Telegraph’s description of a “gas field” is premature “as the political and regulatory conditions for its development do not exist in the UK today.”
At present there is a moratorium on hydraulic fracturing (fracking) for shale-gas, a practice with strong opposition, with fracking having been met with protests, critiqued for creating earth tremors, and clashing with the government’s environmental course, plans to reduce reliance on fossil fuels, and Net Zero aims.
Commissioning Deloitte to undertake an assessment of the potential economic, social and environmental impact that developing this gas resource could have, Egdon Resources said the gas resource is capable of supplying over 16 trillion cubic feet of gas, amounting to around six to seven years of current gas consumption.
Deloitte’s modelling estimates that the development would generate a GDP contribution of over £100 billion, up to 250,000 direct and indirect jobs, and offset 202 million tons of CO2 equivalent when compared to the emissions associated with imported gas.
Egdon Resources said: “The Telegraph article relates to the potential gas resources in the Gainsborough Trough geological basin which extends across parts of Lincolnshire, Nottinghamshire and South Yorkshire.
“The presence of these gas resources in shales and sandstones at a depth of around 2 kilometres, was proven by the drilling of the Springs Road-1 well back in 2019 and compare favourably with some of the best producing shale basins in the USA.
“At present they cannot be developed due to the moratorium on hydraulic fracturing (fracking) for shale-gas. It’s description in the article as a “gas field” is premature as the political and regulatory conditions for its development do not exist in the UK today.
“Egdon commissioned Deloitte to undertake an assessment of the potential economic, social and environmental impact that developing this gas resource could have. This has highlighted a gas resource capable of supplying over 16 trillion cubic feet of gas or around 6-7 years of current gas consumption thus offsetting significant amounts of imported gas.
“Deloitte’s modelling estimates that if this was developed it would generate a GDP contribution of £140 billion, £34 billion of direct taxes, up to 250,000 direct and indirect jobs and offset 202 million tons of CO2 equivalent when compared to the emissions associated with imported gas. To put that in context that is equivalent to the annual emissions of over 40 million cars.
“As accepted by the Government and shown by the Climate Change Committee’s figures, whilst its use will reduce, gas will continue to be an important part of the UK energy mix out to 2050 and beyond. The UK will become increasingly reliant on imports as North Sea production declines.
“The UK government is looking for ways to grow GDP and is increasingly reliant on overseas energy imports such as LNG, much sourced from US shale. It would therefore seem sensible for politicians to consider in a pragmatic and fact based way, the potential security of supply, fiscal, environmental and employment benefits of developing the UK’s own resources such as those present in the Gainsborough Trough.
“The proposed development of Carbon Capture and Storage projects at nearby Humberside further enhance the environmental credentials of this opportunity.”
The Secretary of State for Energy Security and Net Zero, Ed Miliband, is among those opposed to fracking, needed to extract the gas.
A Department for Energy Security and Net Zero (DESNZ) spokesperson said: “We intend to ban fracking for good and make Britain a clean energy superpower to protect current and future generations.
“The biggest risk to our energy security is staying dependent on fossil fuel markets and only by sprinting to clean power by 2030 can the UK take back control of its energy and protect both family and national finances from price spikes.
“Through our Plan for Change, we will reignite our industrial heartlands as we seize the opportunities of the clean energy transition, and will continue to drive investment for businesses and communities in the UK.”
A moratorium on fracking in England is in place because of an inability to predict the size, timing or location of any seismic events that take place after fracking operations.
The government has also highlighted that there is no guarantee that oil and gas produced in the UK will be used here, with private companies selling to an international market.
The government has a commitment not to issue new oil and gas licences to explore new fields, which it is to consult on in due course.
