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CNG Services Response to the Budget 2013

CNG Services welcomes the news today that the Budget includes a number of measures to help bring forward UK shale gas developments.


DECC forecasts that by 2025 the UK will be importing around 1 million barrels of oil per day, at a cost of around £40 billion per year. The UK shale gas industry has the potential to greatly re duce these imports, and at the same time finance renewable and alternative energy projects to ensure UK energy security.

CNG Services are working with a number of anaerobic digester plants that are developing the capability to inject biomethane into the gas grid. CNG Services owns the UK's largest CNG station which fuels trucks on Bio - CNG, delivering significant CO 2 and air quality benefits. By using the Green Gas Certification Scheme, companies can track their green gas from anaerobic digester to CNG filling station to vehicle.

This boost to domestic shale gas production will generate taxes, which will provide funding for renewables, insulation and a shift to natural gas vehicles.

CNG Services Ltd MD John Baldwin commented on the news of support for developing shale gas in the UK:

"Whilst our main business activity is in relation to biomethane injection to the gas grid, it will greatly help the UK economy and secure the long term future of renewables if the UK can produce more domestic gas and save the cost of importing oil and gas. We think that by 2030 all UK trucks should run on Bio - CNG, made up of 20% bio methane and 80% domestic shale.

We note that over time UK shale gas producers are expected to pay more than 50% tax, but when the UK buys gas from Russia and Qatar we clearly get zero tax income . We must aim to have no imports of oil and gas by 2030, with the taxation from shale oil and gas used to help fund the transition to renewables. It is very good news for the UK economy and for planet earth th at the Chancellor recognises this."

on the Biomethane, CNG Gas, Virtual Pipelines and Onshore Gas developments...