Gas storage approved off northwest England

The UK government has granted its first gas storage license for the £600 million ($1 billion) Gateway Gas Storage project.

Offshore staff

EDINBURGH, UK -- The UK government has granted its first gas storage license for the £600 million ($1 billion) Gateway Gas Storage project.

The license has been issued by the Department of Energy and Climate Change (DECC) in line with Britain’s 2008 Energy Act. It consolidates the main environmental and planning consents issued by DECC and the UK Marine & Fisheries Agency in November 2008.

George Grant, chairman of Gateway Storage Company said: “We are now fully engaged with the project’s engineering design and are targeting 2014 for the start of commercial storage operations.”

The Gateway facility will provide storage to satisfy five days of Britain’s average gas demand (equivalent to around 30% of current UK storage capacity). The complex will be built in 20 salt caverns, around 750 m (2,460 ft) beneath the surface of the seabed in the East Irish Sea, 15 mi (24 km) southwest of the port of Barrow-in-Furness.

The facilities will be connected to Britain’s National Gas transmission system via a new offshore pipeline to a gas compression station adjacent to the existing Morecambe field gas terminals at Barrow.

In January, Gateway appointed AMEC, Parsons Brinckerhoff, and Senergy to perform detailed engineering design for the offshore and onshore components. Construction should start at the end of this year.

02/15/2010

More in Field Development