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    Isle of Man Eyes Own Gas Supplies

Summary

A Manx company has won a government licence to produce gas, reducing the island state's import dependency.

by: William Powell

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Natural Gas & LNG News, Europe, Corporate, Exploration & Production, News By Country, United Kingdom

Isle of Man Eyes Own Gas Supplies

Isle of Man-based hydrocarbon exploration company Crogga has won the licence to appraise and produce gas from waters off Maughold Head, the Manx government said October 15. Block 112/25 is known as the ‘Crogga Field’.

The Manx government confirmed to NGW this was the only licence award to be made under its 2017 territorial waters licensing round which closed last year and which has just been announced. 

The Isle of Man depends on imported natural gas both for electricity generation and for heating but the reserves identified during an appraisal in 1982 could help the island become more energy secure and move towards a lower-carbon energy mix.

Crogga's funding ensures there will be no direct cost to the Manx government or Manx public for Crogga’s appraisal operations, the government said. In the coming months Crogga will acquire and process a 3-D seismic survey of the field and if it confirms the presence of commercial accumulations of natural gas, the company will undertake appraisal drilling. The planned appraisal and development programme is based on proven technologies and techniques consistent with those used in the UK North Sea. 

Crogga CEO Diccen Sargent said that: "The best interests of the island are at the heart of our business and [we] will do everything in our power to ensure that opportunities are created for residents, businesses and marine stakeholders. Throughout both the appraisal and development operation, we will be working closely with the Isle of Man government and the local community. We believe in a bright future for the Isle of Man as it transitions away from energy dependency on other nations."

A spokesperson said Crogga Ltd is a private company, established 2017 which has raised initial investment from a number of private individuals and companies from the Isle of Man.

The island is not part of the UK or European Union, but has the status of 'crown dependency', similar to Jersey and Guernsey, with an independent administration. Its inhabitants are British citizens. It receives gas from the UK mainland, from a pipeline that also runs under the sea to Ireland.  The Manx government tells NGW that 1.1 terawatt-hours of gas (102mn m3) were thus imported into the Isle of Man in 2017. 

The map shows the licence awarded to Crogga in Manx territorial waters, to the east of the Isle of Man (credit: Crogga)

Spirit Energy-operated Morecambe Bay gasfields lie to the southeast in UK waters