Step closer for £200m INEOS UK gas storage unit

15 January 2007 15:35  [Source: ICIS news]

LONDON (ICIS news)--INEOS Enterprises has signed key contracts for the development of its £200m (€303.7m) Cheshire, UK, gas storage facility, the company said on Monday.

 

The Stublach Gas Storage Project would be operational by 2012 with all 28 cavities in service by 2018, said INEOS.

 

It will have a capacity of 400m m3 and a gas deployment rate of 12m therms per day, making it one of the largest storage projects in the UK.

 

Engineering and construction group Costain has been awarded the front end engineering design contract, while Géostock was providing consultancy design services for the underground storage cavities.

 

In addition, Lehman brothers was providing financial and commercial advice for the project, INEOS said.

 

“We are delighted to be able to announce these major contract awards, which mark the next phase of this strategically important project,” chief executive of INEOS Enterprises, Harry Deans, said:

 

Deans said the scheme, which was granted final planning permission in December last year, was vital to the security of UK energy supplies.

 

Improved gas storage availability and an improved gas supply infrastructure are seen as critical if UK users are to avoid excessive price swings at times of high demand. 

 

(€1 = £0.66)

 

By: Graeme Paterson
+44 20 8652 3214

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