EDF, WINGAS continue with UK natural gas storage plans
France’s EDF Energy and Germany’s WINGAS will proceed with their storage projects despite the UK government’s decision to scrap a subsidy plan, ICIS has learned.
The UK’s Department of Energy and Climate Change (DECC) last week abandoned plans to introduce interventions to encourage the building of more gas storage, concluding that the market will function adequately at times of system stress ( see ESGM 4 September 2013 ).
Developer Gateway Storage has already scrapped its proposed project, while other projects, such as British utility Centrica’s long-range Baird facility, could be next in line to be abandoned, although the company has yet to decide.
But WINGAS, a subsidiary of Germany’s Wintershall and Russia’s Gazprom, and EDF have since confirmed to ICIS that they will proceed with their projects even without incentives in place.
“Commissioning work at EDF Energy’s Hill Top Farm gas storage facility... is continuing with a plan to start commercial operation by the end of the year,” an EDF spokesman said.
Based in Cheshire, the facility will have an initial capacity of 234GWh – or 21.7 million cubic metres (mcm) – and a maximum capacity of 1,070GWh when all 10 caverns are on line.
WINGAS’s Saltfleetby facility will also move forward, but the company declined to provide more details as to its current state of development.
The Lincolnshire-based site will have a total capacity of 700mcm when fully operational. Jack Elliott
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