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U.K.'s Shale-Gas Costs Seen Limiting Price Curbs

Costs for producing shale gas in the U.K. are double that of the U.S., limiting any price reduction for consumers, according to Bloomberg New Energy Finance.

Extracting gas from shale in areas such as the Bowland basin in northern England would cost $7.10 to $12.20 per million British thermal units compared with $5 to $6 in the U.S., BNEF wrote in evidence to a House of Lords committee. The greater cost, because of higher land prices and lack of rigs and infrastructure, is close to the $8-to-$11 range in which U.K. spot prices have traded in the last two years, it said.