The Isle of Man has taken the first step towards developing its own energy supply, with the award by the Manx government of the first licence for natural gas appraisal and production in its home waters.
Crogga, the hydrocarbon exploration firm based on the island, will examine the reserves in Block 112/25 off Maughold Head.
It will conduct a 3D seismic survey of the ‘Crogga Field’, followed by exploratory drilling if this identifies commercially viable accumulations of gas.
Chief executive of Crogga, Diccen Sargent, said: “We are absolutely delighted to have been awarded a licence to appraise the natural gas resources in Block 112/25.
“Throughout both the appraisal and development operation, we will be working closely with the Isle of Man Government and the local community. We believe in a bright future for the Isle of Man as it transitions away from energy dependency on other nations.”
We believe in a bright future for the Isle of Man as it transitions away from energy dependency
Diccen Sargent, chief executive, Crogga
Crogga claimed that securing its own energy supply would enable the Isle of Man to transition to a lower carbon energy mix and benefit “environmentally, socially and financially”.
The offshore area was evaluated for natural gas potential by BP in the 1980s and 1990s but was not considered commercially.
However, rising gas prices, advances in technology, the existing gas power station and a viable export route via the Isle of Man justified a re-evaluation of the economic potential, said Crogga.