INEOS Enterprises has today announced that it has signed an agreement with Gaz de France for the commercial development of the Stublach Gas Storage Facility in Cheshire. The value of the agreement is not disclosed.
Under the agreement, Gaz de France will assume responsibility from INEOS Enterprises for the development of the Stublach Gas Storage Facility. INEOS Enterprises will provide solution-mining services for the creation of the cavities. Gaz de France will also operate the facility upon completion.
Gaz de France is a major player in both the UK and European energy markets and is involved in the production, transportation, distribution, trading and marketing of gas, electricity and related services for its customers.
Gaz de France has more than 50 years experience in natural gas storage and transportation and has an excellent safety record. The company currently operates 12 sites in France, storing 9.5 billion cubic metres of gas, as well as some facilities in Germany and Eastern Europe. Gaz de France is a key supplier to British industry. This agreement will play a significant part in Gaz de France's growth strategy for the UK.
Zyda Law, acting for INEOS Enterprises, secured planning and hazardous substances consent for the Stublach Gas Storage Facility in 2006. The project will consist of up to 28 cavities that will be solution mined for gas storage at INEOS Enterprises' existing brinefields at Holford, Cheshire, along with a gas compression station and associated infrastructure that will connect the facility to the National Transmission System. The facility is designed to store a maximum working gas volume of approximately 200 mTherms of natural gas and have a deliverability of 12m therms/day.
Dr Harry Deans, CEO INEOS Enterprises comments: "We are pleased that we have been able to reach this agreement with Gaz de France. This alliance plays to the key strengths of Gaz de France and INEOS Enterprises and will secure delivery of this much needed and strategically important storage facility. The facility will make a significant contribution to the long-term security of gas supplies in the UK and to the future of INEOS Enterprises through the associated brine winning activities."
INEOS Enterprises will continue to be closely involved in the forward development of the Stublach Gas Storage Facility through the provision of specialist skills and expertise in the solution mining of the new gas cavities, with the brine extracted used by INEOS Enterprises for onward supply to the local chemicals industry.
Pierre Clavel, Senior Vice President, International, Gaz de France, comments: "This acquisition gives Gaz de France the opportunity to extend its international storage portfolio by applying its 50 years of experience and expertise in the different storage technologies. This agreement also reflects Gaz de France's significant role in the UK. This new facility will be able to provide up to 12 per cent of the UK's average daily consumption and therefore enhance the security of supply to the UK market."
The first phase of the Stublach Gas Storage Facility remains on track to commence cavity development in 2009.
Zyda Law are assisting INEOS with the completion of the sale to GdF.