US shale gas to heat British homes

Fuel for thought

US shale gas to heat British homes

02 Apr, 2013

Published over 13 years ago. See the latest and most current information on Fuel for thought.

US shale gas will heat British homes within the next five years, it has been announced, but experts are concerned about the possibility of methane leaks.

A deal with Centrica will see the first major exports of US shale gas take place, enabling almost two million homes in the UK to be heated by the fuel in the next five years.

The deal, which was agreed on Monday, will mark the first time major exports of the controversial energy source are used in the UK.

While the US government has kept shale gas exports to a minimum during the past five years, since the fuel’s boom started, this new deal will open up the market to cheap supplies from the US.

This is much needed due to the fact that North Sea gas is running out, and European pipelines are expensive. What’s more, Britain’s severe cold snap has seen Britain’s gas reserves dwindle due to the increased demand. Indeed, last week it was reported that just two days’ worth of gas was left in storage.

However, shale gas exploitation has been blamed for many environmental problems in the UK. This includes water, ground and air pollution, as well as methane leaks.

The deal will see Centrica pay £10 billion over 20 years in exchange for 89 billion cubic feet of gas each year. This is enough to heat 1.8 million homes.

Centrica struck the agreement with Cheniere, which was one of the first US companies to receive federal clearance to export shale gas in the form of liquefied natural gas. The first deliveries are expected to arrive by tanker in 2018.

Sam Laidlaw, chief executive of Centrica, said: "In an increasingly global gas market, this landmark agreement represents a significant step forward in our strategy … helping to ensure the UK's future energy security."

PIN 27.2 Apr/May 2026

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