UK lets license for subsea gas storage
The UK government has awarded a license to Gateway Storage Co. for construction of a ₤600 million subsea gas storage facility.
OGJ Oil Diplomacy Editor
LOS ANGELES, Feb. 17 -- The UK government has awarded a license to Gateway Storage Co. for construction of a £600 million subsea gas storage facility.
Gateway expects commercial storage operations to begin in 2014.
The license is the first to be awarded under the UK’s Energy Act 2008, which encouraged the development of natural gas storage facilities aimed at promoting Britain's security of supply.
Gateway said the new storage will be in 20 salt caverns 15 miles off Barrow-in-Furness, connected to the National Gas Transmission System via a new pipeline to a compression station adjacent to existing Morecambe gas terminals at Barrow.
The caverns will be 750-1,025 m below the seabed. They will have storage capacity of 1.512 billion cu m.
Analyst BMI, noting that the company does not seem to have secured the necessary funding for the project, said it remains to be seen “whether the project will be able to keep to its previous target of starting construction of the facility in 2010.”
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