British Gas owner Centrica has bought a stake in a shale gas exploration area worth tens of millions of pounds.
The company has become a 25% investment partner in the Lancashire Bowland licence area, which is operated by Cuadrilla Resources.
Centrica has paid £40 million in cash and committed tens of millions of pounds in further funds on the venture.
Cuadrilla is among a small number of companies exploring the UK’s shale gas potential and estimates there are huge supplies in its licensed areas.
Australian engineering group AJ Lucas also has a stake in the Lancashire field.
Cuadrilla chief executive Francis Egan said on Thursday: “Today’s announcement represents a significant step in our ongoing exploration programme for natural gas within the Lancashire Bowland Basin.
“Centrica, Cuadrilla and AJ Lucas recognise the exciting gas potential that lies within the shale rock in Lancashire.
“Natural gas from UK shale can create thousands of jobs, generate significant tax revenues, reduce our ever-increasing reliance on imported coal and gas and make a positive contribution to the country’s balance of payments.
“Centrica will bring to the Cuadrilla-operated joint venture deep experience of all aspects of natural gas exploration, extraction and transportation and share the commitment of Cuadrilla and AJ Lucas to explore for and develop this resource in a safe and environmentally-responsible manner.”
Mark Hanafin, managing director of Centrica’s International Upstream business, said: “With North Sea gas reserves declining and the UK becoming more dependent on imported gas supplies, it is important that we look for opportunities to develop domestic gas resources, to provide affordable sources of gas to our customers, and to deliver broader economic benefits to the UK.”