Third Energy has agreed to sell off its British onshore gas exploration, appraisal and production business to York Energy (UK) Holdings.
In a statement, Third Energy said it has agreed the sale of Third Energy Onshore to York Energy, which is affiliated to the American firm Alpha Energy, for an undisclosed sum.
The sale includes both its Third Energy UK Gas and Third Energy Trading businesses, which owns a power generating station at East Knapton, North Yorkshire.
The Knapton station is supplied by gas from four producing gas fields beneath the Vale of Pickering and has been providing power to North Yorkshire since May 1995.
The statement adds that the sale is subject to a regulatory review.
“We are pleased to be working with the Third Energy team to develop the group’s energy and generation business, and look forward to constructive engagement with all stakeholders in Third Energy’s next stage of development,” said Alpha Energy’s chief executive, Tom Reed.
The company had planned to frack for shale gas at its Kirby Misperton site in Yorkshire.
But in January 2018, business secretary Greg Clark said Third Energy would not receive consent to frack until financial checks had been completed.
A month later, Third Energy started to remove fracking equipment from the site.
In February this year, energy minister Claire Perry defended the often-villainised process of fracking to produce that gas.
Speaking at edie’s Sustainability Leaders Forum, Perry pointed out that around 80 per cent of British homes currently rely on gas for cooking and heating their homes.
“You cannot run an energy system entirely off renewable energy today,” she told the event. “So, we have some level of gas dependency in our mix, all be it dropping quite sharply.”