UK Halts Unconventional Licence Awards in Scotland

The UK government has "agreed in principle" not to award licences for unconventional oil and gas exploration in Scotland as part of the 14th licensing round.

The Scottish government announced in January that it was imposing a moratorium shale gas and coalbed methane developments in while further research and a public consultation was carried out, however power powers for the licensing of oil and gas have not yet been devolved from Westminster.

However, the UK government said that it would consult with companies which have already applied for licences "before making a final decision."

Scottish energy secretary Fergus Ewing said: "We argued that the decisions over fracking should be decisions for Scotland.

Mr Ewing said the move "means that policy over unconventionals in Scotland will be discussed, debated and then decided in Scotland."

Ineos, which is pursuing shale gas development for its Grangemouth petrochemical plant issued a statement questioning whether the change in policy.

It said: "Ineos understands the commitment to devolve powers to Scotland including the development of exploration licences in Scotland. However, it is not in fact necessary to delay awarding of the 14th Round exploration licences in Scotland as the Scottish Government already has effective control over any physical activity on the licences through the planning system.

"Ineos remains committed to engage with local communities in Scotland to provide information on the economic and environmental impact of unconventional oil and gas.

"We believe the best way to assure security of supply and the long term success of the Scottish economy and its manufacturing sector is to develop an indigenous shale gas resource."

Related Reading: Ineos Sees Grim Prospects for Grangemouth Without Domestic Shale Industry