Member Article

Northern economies could see jobs and investment boost from shale gas supply hub

Northern economies could benefit from a £30bn boost from the creation of a shale gas supply hub according to an independent report published today.

The development of a supply chain to support the industry could also support 13,000 jobs – more than double the amount than without a supply hub.

The report, Shale Gas – Creating a Supply Hub for the Bowland Shale, is published by AMION Consulting and commissioned by Peel Gas & Oil.

The figures are based on the development of 100 well pad sites in the Bowland Shale, covering the Midlands and North of England.

It is estimated that developing the sector will generate a spend of around £30 billion up to 2048.

The development of a co-located supply chain could see the Bowland Shale area retain twice the amount of this expenditure in the region than without a supply hub.

The report also identifies that the Bowland Shale, and in particular the Ocean Gateway area stretching from the port of Liverpool to Manchester, could become a UK and international ‘centre of excellence’.

Peel Gas & Oil Managing Director, Myles Kitcher, said: “Creating a prosperous supply chain to service the Bowland Shale could be transformational in driving the Northern Powerhouse economies.

“From cementing services and steel supplies to water management and infrastructure, the opportunities are abundant.

“The findings of this report demonstrate the huge benefits that are on offer but we need to act quickly or we risk losing out to other countries who are already active in the sector.

“By clustering activities together we have the opportunity to create an international centre of excellence for the industry.”

Chair of Liverpool City Region Local Enterprise Partnership (LEP), Robert Hough, said: “We welcome this report as it helps to highlight the potential significance of the Shale Gas industry for local businesses.

“It is, in fact, an area the LEP itself has been giving consideration to and indeed we are currently working with partners to evaluate the potential for the Liverpool City Region economy to benefit from shale development.”

This was posted in Bdaily's Members' News section by Sophia Taha .