Scottish & Southern Energy PLC
25 September 2006
CONSENT SOUGHT FOR EXTENSION TO ALDBROUGH GAS STORAGE FACILITY
Scottish and Southern Energy, in a joint venture with Statoil (U.K.) Ltd, is
seeking consent to increase the storage capacity at the new Aldbrough Gas
Storage facility in Yorkshire.
SSE and Statoil (U.K.) Ltd have acquired land adjacent to the existing Aldbrough
site and consent is being sought from East Riding of Yorkshire Council to
develop a further nine gas storage caverns at the facility, which is currently
under development. This will approximately double the amount of gas that can be
stored at the facility.
The extension will largely be under ground, and will make use of above ground
facilities already present on site; limited additional above ground development
will be required.
The government's recent report on the Energy Review stated: 'As the production
of our indigenous supply of gas continues to decline ... there is an increasing
need for gas supply infrastructure such as gas storage.' Construction of the
extension to the Aldbrough facility, which is adjacent to SSE's existing storage
installation at Hornsea, will help ensure that the UK can meet gas demand during
periods of high energy usage.
SSE's original joint venture with Statoil (U.K.) Ltd at Aldbrough, in which SSE
is investing £150m, out of a total cost of £250m, is continuing to make good
progress. This first part of the development will have a total capacity of
around 420million cubic metres (mcm), of which SSE will have the ownership
interest in 280mcm. The second part of the development will add a further 420mcm
of capacity, of which SSE will have the ownership interest in 210mcm.
The work at the proposed extension to Aldbrough is expected to cost less than
the current development. SSE will contribute 50 per cent of the cost of the
extension.
Ian Marchant, Chief Executive of SSE said: 'Our Aldbrough facility as it stands
will be the UK's largest onshore gas storage site. Extending the site will give
the country even more gas supply security with minimal additional development
above ground.
'During the consent process, we'll be working with the local community to ensure
that people and businesses are kept well informed about our plans. We've been
grateful to have the support of local residents during the development of the
first phase of our facility and I hope this good relationship will continue.'
Enquiries to:
Scottish and Southern Energy
Alan Young, Director of Corporate Communications 0870 900 0410
Louisa MacKenzie, Corporate Communications 0870 900 0410
This information is provided by RNS
The company news service from the London Stock Exchange
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