Centrica to explore coal bed methane in Wales

London - Centrica plc, the parent company of British Gas, plans to drill for gas within the coal beds of South Wales, as part of its broader search for new energy supplies for its British Gas customers. Under the UK government's 13th Onshore Licensing round, the group has secured interests in three licences close to Rhondda, Caerphilly and Pontypridd.

According to Centrica, it will hold 100% interest in two licences, with a shared interest in a third. The energy group will start pre-development studies later this year, with a planning application expected in late 2009. Subject to approvals, drilling could commence in 2010, with possible development by 2014, the company stated.

Coal bed methane is an emerging technology used to drill into depleted coal fields to access gas trapped within the rock structures. It is relatively untried within the UK, but well developed in North America, where Centrica's Direct Energy subsidiary has drilled over 160 coal bed methane wells since 2000. Coal bed methane also offer long-term potential to store CO2 in old wells once gas has been produced.

"As part of our continued investment programme to secure long term energy supplies for our British Gas customers, emerging technologies such as coal bed methane offer an opportunity to maximise the UK's own energy resources," according to Sam Laidlaw, chief executive of Centrica, in a group press statement.