Business

Total to invest in UK shale gas industry

05:50 am on 12 January 2014

French oil and gas company Total is to announce on Monday that it is to invest in the shale gas industry in Britain.

Total will be the first of the major oil companies to invest in shale gas in the UK, the BBC has confirmed.

The British Geological Survey estimates there may be 1,300 trillion cubic feet of shale gas present in the north of England.

The BBC says Total is to buy substantial stakes in firms with drilling licences in the north of England, where other large energy companies such as Centrica and Gaz de France have already invested.

Shale gas has helped boost the domestic energy industry in the United States in recent years, where oil production has risen and gas prices have plummeted.

Senior government sources told the BBC that the Total investment was a strong vote of confidence in the sector.

The UK currently consumes only three trillion cubic feet of gas annually.