Seeking to extend UK gas storage facility

September 25, 2006, 01:00 CEST

Statoil and Scottish and Southern Energy (SSE) will jointly seek consent to extend the Aldbrough Gas Storage facility in the UK.

Statoil and SSE have acquired land adjacent to the existing Aldbrough site which is currently under development. Consent will be sought from the local authorities in the UK to develop a further nine gas storage caverns. This will approximately double the amount of gas that can be stored.

The extension will largely be under ground, and the intention is to use above-ground facilities already on site. However, some limited additional above-ground development will be required.

The UK government’s recent report on the Energy Review stated: “As the production of our indigenous supply of gas continues to decline … there is an increasing need for gas supply infrastructure such as gas storage.”

Construction of the extension to the Aldbrough facility will help to ensure that the UK can meet its gas demand during periods of high energy usage.

The original joint venture between SSE Hornsea Limited (a wholly owned subsidiary of Scottish & Southern Energy plc) and Statoil (U.K.) Ltd at Aldbrough is continuing to make good progress. This first part of the development will have a total capacity of around 420 million cubic metres (mcm) and the second part of the development will add approximately 420mcm more capacity.