Gas Storage Project
Centrica PLC
Centrica begins work on proposed new offshore gas storage facility - UK's first
for 25 years
Centrica plc, the parent company of British Gas, today announced that it is
proposing to create the UK's first offshore gas storage facility for over 25
years. The proposal, with partners Gaz de France and First Oil plc, will focus
on a development study to convert the Bains gas field, in the East Irish Sea,
into a dedicated seasonal storage facility nearly one fifth the size of Rough,
the UK's largest gas storage site.
Pre-development studies will run until early 2009, before a final investment
decision is made to develop the project. If progressed, the facility could be
available to come online for gas production and injection in the winter of
2011/12, with a storage capacity of up to 20 billion cubic feet (bcf).
The Bains project proposes to convert the existing partly depleted Bains field,
eight miles north east of Centrica's South Morecambe field, to a storage
facility with a dedicated twenty mile pipeline to the Barrow onshore terminal. A
new unmanned platform and additional compression facilities would be required.
Reservoir characteristics of the existing Bains field indicate a storage
facility could offer significant flexibility to inject and produce gas at short
notice.
Centrica, which operates the Bains field alongside its Morecambe fields, will
project manage the development on behalf of the partners - Centrica (52.8%), Gaz
de France (34%), First Oil (13.2%).
Sam Laidlaw, Chief Executive of Centrica, said: 'We believe Bains has real
potential as a new gas storage facility, being close to existing infrastructure
and having the right reservoir characteristics.
'As the UK becomes increasingly reliant on imported gas and flexibility from
North Sea fields declines in the coming years, investing in much needed storage
facilities, which will boost this country's security of supply, forms part of
Centrica's long term programme of investing in a range of gas, power and
renewable projects to supply our British Gas customers.'
Notes:
1/ The UK has the lowest level of gas storage capacity of major EU economies, at
around 5 per cent of its annual demand
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Enquiries:
Centrica Investor Relations: + 44 (0) 1753 494900
Centrica Media Relations:
Andrew Hanson + 44 (0) 1753 492551
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