Many pension funds support the fracking industry via investments in Centrica PLC, which owns a slice of the Lancashire frack fields of controversial fracker Cuadrilla.
To understand how pension funds co-own Cuadrilla’s fracking interests, it’s necessary to break down how Centrica bought into the deal, and what it bought.
In 2013, a Centrica PLC unit, International Upstream, announced the deal (see p16 of here). The head of International Upstream Mark Hanafin, appears to have been instrumental. Centrica PLC’s corporate structure reveals International Upstream to be part of Centrica PLC, not a seperate company.
What did the deal look like? In June 2013, Centrica announced: “Centrica has acquired two subsidiary entities … (in the Lancashire licence block, named PEDL 165)”
PEDL 165 is owned by six companies:
BOWLAND RESOURCES LIMITED
BOWLAND RESOURCES (NO.2) LIMITED
CUADRILLA BOWLAND LIMITED
LUCAS BOWLAND (NO.2) LIMITED
LUCAS BOWLAND (UK) LIMITED
According to the Department of Energy and Climate Change, Centrica PLC purchased the first two of these companies (Bowland Resouces Ltd and Bowland Resource no2 Ltd) in 2013.
So Centrica PLC, via IU, now own the above companies. In this way, investors in Centrica PLC also co-own them, and hence 25% of Cuadrilla’s fracking block.