Seeking Consent

Scottish & Southern Energy PLC 25 September 2006 CONSENT SOUGHT FOR EXTENSION TO ALDBROUGH GAS STORAGE FACILITY Scottish and Southern Energy, in a joint venture with Statoil (U.K.) Ltd, is seeking consent to increase the storage capacity at the new Aldbrough Gas Storage facility in Yorkshire. SSE and Statoil (U.K.) Ltd have acquired land adjacent to the existing Aldbrough site and consent is being sought from East Riding of Yorkshire Council to develop a further nine gas storage caverns at the facility, which is currently under development. This will approximately double the amount of gas that can be stored at the facility. The extension will largely be under ground, and will make use of above ground facilities already present on site; limited additional above ground development will be required. The 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, which is adjacent to SSE's existing storage installation at Hornsea, will help ensure that the UK can meet gas demand during periods of high energy usage. SSE's original joint venture with Statoil (U.K.) Ltd at Aldbrough, in which SSE is investing £150m, out of a total cost of £250m, is continuing to make good progress. This first part of the development will have a total capacity of around 420million cubic metres (mcm), of which SSE will have the ownership interest in 280mcm. The second part of the development will add a further 420mcm of capacity, of which SSE will have the ownership interest in 210mcm. The work at the proposed extension to Aldbrough is expected to cost less than the current development. SSE will contribute 50 per cent of the cost of the extension. Ian Marchant, Chief Executive of SSE said: 'Our Aldbrough facility as it stands will be the UK's largest onshore gas storage site. Extending the site will give the country even more gas supply security with minimal additional development above ground. 'During the consent process, we'll be working with the local community to ensure that people and businesses are kept well informed about our plans. We've been grateful to have the support of local residents during the development of the first phase of our facility and I hope this good relationship will continue.' Enquiries to: Scottish and Southern Energy Alan Young, Director of Corporate Communications 0870 900 0410 Louisa MacKenzie, Corporate Communications 0870 900 0410 This information is provided by RNS The company news service from the London Stock Exchange

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