UK gives go-ahead for Cuadrilla shale gas fracking permit

LONDON, Oct (HKSE: 3366-OL.HK - news) 6 (Reuters) - The British government approved one of two Cuadrilla shale gas fracking permits on Thursday, using new powers that allow it to overturn a local government decision against the permits made last year.

Britain's Department for Communities and Local Government said it was also minded to approve the second permit but has asked for further evidence on road safety.

In mid-2015, Lancashire County Council rejected Cuadrilla's requests to carry out fracking, saying the work would cause too much traffic and noise.

Soon after, Britain gave its communities minister power to directly approve shale gas permits.

Britain is estimated to have substantial amounts of shale gas trapped in underground rocks and the government is supportive of extracting these resources to help offset declining North Sea oil and gas output.

Australia's AJ Lucas holds a large stake in Cuadrilla. (Reporting by Karolin Schaps and Susanna Twidale; Additional reporting by Kate Holton; editing by Susan Thomas)