Utility Week: Centrica will 'put up more capital' for shale gas exploration

Centrica has firmed its commitment to shale gas stating that it will put "more capital up" for exploration in the fledgling energy source over the "next few years". 

Last month Centrica bought a 25 per cent stake in a UK shale gas exploration licence. 

The £40 million deal meant British Gas' parent company took 25 per cent interest in the Bowland shale exploration licence from Cuadrilla and AJ Lucas. Centrica will also pay exploration and appraisal costs of up to £60 million. 

Speaking following Centrica's half-year results announced today (Wednesday), Nick Luff, group finance director, said: "Obviously its early stages with shale gas in the UK. We do have the partnership with Cuadrilla, which we have put some capital up for and will put more capital up in the next few years as we drill some test wells and just see what the potential is, and I think we'll take it from there depending on what results we get from those tests."  MORE