Statoil has acquired the development rights for an underground gas storage facility to be built at Aldbrough on the east coast of England.
This acquisition follows an agreement to buy all of the shares in the Aldbrough Gas Storage Company Ltd from Intergen, a company owned jointly by Shell and Bechtel.
The new facility will act as a buffer against possible terminal interruptions, and will provide additional security of supply for Statoilâs gas deliveries to the UK market.
In addition, the facility's rapid injection and withdrawal capability will support the group's UK gas trading activities.
A total of three underground salt caverns are to be prepared to receive 170-230 million cubic metres (six-eight billion cubic feet) of gas.
This will involve the construction of an eight-kilometre gas pipeline connection tied into Britainâs national transmission system, a power line connection to the Yorkshire Electricity distribution network and a seawater leaching system.
Plans call for everything to be ready for operations to start in 2007.
âThis facility will provide us with a back-up for our gas deliveries from the Norwegian continental shelf,â says vice president and project director Mike Kelly at Statoil UK.
âIt also gives us a useful trading tool to enhance the value of our gas portfolio.â
Gas is currently supplied to the UK via the Vesterled trunkline from the Heimdal platform in the North Sea and the Frigg pipeline to the St Fergus terminal in Scotland.