South Africa Lifts Moratorium on Shale Gas Fracking

South Africa has lifted a moratorium on shale gas exploration in the Karoo region.

Collins Chabane, a minister in the President's office , said the cabinet had decided to lift the moratorium, imposed in April last year, after a study eased safety concerns over the method which has been highly criticised by environmentalists, Reuters reported.

Fracking, or hydraulic fracturing, is a method used to extract gas trapped in rock formations.

Studies suggest that South Africa has 485 trillion cubic feet of technically recoverable shale gas resources, most of which are located in the vast semi-arid Karoo Basin. Exploraing these gas reserves could alleviate South Africa’s energy shortage.

Reuters citing Eurasia political risk consultancy said the move could benefit Royal Dutch Shell, Falcon Oil & Gas and Anglo American.

Oil major Shell said last year it hoped to invest $200 million to the Eurasia political risk consultancy explore for shale gas in the Karoo and the company welcomed the government's decision.