UK: underground gas storage facilities

E.ON (UK) is to build one of the UK’s largest underground gas storage facilities after it acquired a company from ScottishPower that had gained full planning permission to develop the site. E.ON paid ScottishPower EUR 140 million for Holford Gas Storage Ltd, a company formed with the sole intention of building the storage facility in Cheshire, NW England. E.ON UK will spend a further EUR145 million over the next four year to develop the project. E.ON UK will begin work on the project’s infrastructure next month and work to create the caverns for storing gas will start mid 2006. The first phase of the storage capacity is expected to be operational by the end of 2008, with the entire 165 million cubic metres coming on stream in 2009 and 2010. The facility will hold enough gas to meet half of the UK’s daily demand.

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