British government on Thursday lifted a ban on a controversial technique in shale gas extraction known as fracking as it approved a company to restart the gas extraction with the method.

"I am in principle prepared to consent to new fracking proposals for shale gas, where all other necessary permissions and consents are in place," Energy and Climate Change Secretary Edward Davey said in a ministerial statement.

British energy company Cuadrilla Resources was allowed to resume operations in Lancashire in northwest England. Since May 2011, Britain has put a temporary stop to fracking for shale gas after two tremors were detected near a fracking site.

"Shale gas represents a promising new potential energy resource for the UK. It could contribute significantly to our energy security, reducing our reliance on imported gas, as we move to a low carbon economy," said Davey.

He said the decision is based on the evidence and came after detailed study of the latest scientific research available and advice from leading experts in the field.

Davey added that new controls will be put in place to reduce the risk of seismic activity. However, environmental activists oppose the move, fearing the landscape will be scarred.

The decision also paves the way for potential exploration of shale reserves elsewhere in the Britain, with possible operations in Balcombe, West Sussex, and in the Mendips.