CORRECTED-Weir pares losses on UK govt shale gas investment comments

Wed Mar 20, 2013 9:18am EDT

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(Corrects headline to show stocks pares losses, not gains)

By Toni Vorobyova

LONDON, March 20 (Reuters) - Engineer Weir Group pared earlier losses after British finance minister George Osborne said in his budget statement to parliament on Wednesday that the UK government would to promote early shale gas investment.

Shares in Weir, which makes pumps used in extracting shale gas, were trading down 0.4 percent at 2,316 pence by 1314 GMT, recovering from a session low of 2,274 pence.

"I am introducing a generous new tax regime, including a shale gas field allowance, to promote early investment. And by the summer, new planning guidance will be available alongside specific proposals to allow local communities to benefit," Osborne said.

"Shale gas is part of the future. And we will make it happen."

(Reporting by Tricia Wright and David Brett; Editing by Toni Vorobyova)

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