Tuesday, 26 September 2023 02:19 GMT

IGas Energy boosted as UK MPs reject fracking ban

(MENAFN- ProactiveInvestors)

UK shale pioneer IGas Energy (LON:IGAS) has been lifted by Parliament’s decision not to impose a moratorium on fracking the controversial process used to extract shale gas.

The new Infrastructure Bill provides clarity which enables both new and existing players to invest in shale IGas says.

Share price gains were however capped by apprehension over the small print of the new legislation. IGas’s shares were up just 4% by late morning on AIM despite an initial rally of some 18% in early deals.

Under the threat of the moratorium IGas fell around 30% ahead of Monday’s votes.

A group of MPs had called for fracking to be banned. The voting however rejected the proposed moratorium by a considerable majority - 308 MPs were against the proposal while 52 were in favour.

Other amendments were passed and the new legislation will see fracking allowed with some additional conditions relating to environmental assessment and closer consultation with individual residents. Also certain areas such as those in national parks will be off limits to gas companies.

The Infrastructure Bill which now moves to the House of Lords also clarifies planning and trespass laws in relation to deep drilling (below 300 metres) beneath properties.

In a stock market statement IGas says Parliament has recognised that domestic gas will form a key part of Britain's energy mix for years to come.

The Infrastructure Bill reinforces industry best practice according to IGas.

Parliament by rejecting the moratorium has recognised the “depth and quality” of existing regulation for exploration and development of oil and gas resources onshore it added.

IGas chief executive Andrew Austin said: "This is a milestone for the industry as there is now clarity and certainty in terms of regulation which enables both new and existing players to invest in shale and Britain's energy future with confidence."


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