LONDON (Reuters) – Britain’s upper house of parliament will on Monday consider plans for a sovereign wealth fund to be set up with revenues raised from shale gas, a source of energy which the government hopes will offset the decline of output from the North Sea.
As part of discussions about legislation on infrastructure, the House of Lords will debate a government plan announced over the weekend to create a fund with money raised from shale gas – once production of this gas trapped in rocks beneath the ground starts towards the end of the decade.
Britain is betting on shale gas to help boost energy production even as operations in the North Sea age. But it has met some local opposition based on concerns over the extraction method’s environmental impact.
Britain’s energy ministry said on Saturday that a shale gas fund would ensure other generations would benefit from the commercial production of shale gas.
“With the sovereign wealth fund everyone in the community will benefit, adding to known wider benefits of shale, such as increased tax revenues, growth and jobs,” said Energy and Business Minister Matthew Hancock in a statement.
Britain’s finance minister George Osborne said in a separate statement the fund would focus on the north of England and whose economic performance lags behind the south.