1st Oct 2025 12:49
(Alliance News) - UK Oil & Gas PLC on Wednesday said it has signed a memorandum of understanding with National Gas Transmission PLC to develop a UK hydrogen pipeline.
The London-based energy firm's subsidiary UK Energy Storage has inked the deal with the British gas pipeline operator.
UK Oil & Gas shares increased more than fourfold to 0.045 pence on Wednesday afternoon in London. The stock has gained 12% in the last 12 months.
UK Energy Storage will work with National Gas on Project Union, a 100% hydrogen pipeline "aimed at connecting future centres of hydrogen production, storage and consumption," according to its parent company.
The agreement formalises UK Energy Storage and National Gas's intent to develop and implement the project.
The tie-up is expected to help the companies secure government funding, with allocation rounds for hydrogen transport and hydrogen storage business models expected to begin in the first half of 2026.
In addition, UK Energy Storage expects to benefit from a direct link between the pipeline and its planned onshore salt cavern hydrogen storage sites.
The first phase of the project, scheduled for operation by 2032, will connect a hydrogen cluster between Teesside and Humberside on England's east coast to UK Energy Storage's East Yorkshire project.
Additionally, the firm said its proposed South Dorset facility is so far "the sole planned national scale hydrogen storage node in southern England," and therefore "critical" to the project's connectivity.
"We regard this MoU as an essential building block towards achieving our mutually shared ambition of creating a joined-up hydrogen economy across the UK, both north and south," commented UK Energy Storage Chief Executive Stephen Sanderson.
By Holly Munks, Alliance News reporter
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