Natural gas usage in the UK could see price reduction here

A GROWING gas commodity in global markets could lead to reduction in Guernsey Gas prices, its commercial director has said.

John Davies has said while Guernsey could not make use of shale gas locally – island boilers are geared to burn liquid petroleum gas – its use elsewhere could have a positive effect on the price of other fuels.

'What has happened in America is that they have found a way to extract the gas by pumping water into the ground, which has made it commercially viable – they are just about ready to export the first shipment of shale gas,' he said.

'The UK is exploring the possibility of shale found in the UK to see if it is viable, but there are a lot of political hoops to go through – people are worried about what impact extracting it could have.'

Mr Davies said that shale gas would be cheaper as it meant companies would not have to rely on volatile Arab markets.