30th Jun 2006 14:53
Scottish & Southern Energy PLC30 June 2006 AUCTION OF GAS STORAGE CAPACITY SSE Hornsea, a subsidiary of Scottish and Southern Energy plc ("SSE"), hascompleted the auction of around 23% of the capacity (43.9 million StandardBundled Units, or SBUs) at its gas storage facility at Hornsea for a five yearterm which will commence in May 2007. The average price achieved per SBU was41.7 pence per annum over each of the five years. In March, SSE Hornsea auctioned 54 million SBUs for the one year term whichcommenced in May 2006. The average price achieved per SBU then was 54.2 penceper annum. Hornsea has 195 million Standard Bundled Units available in total. Each SBUprovides capacity to inject gas into the facility, store gas there and withdrawgas from it. Ian Marchant, Chief Executive of SSE, said: "Our gas storage business at Hornsea has been very successful, with year-on-yearincreases in the value of contracts to provide storage. We are very pleased withthe outcome of this auction, which has again emphasised the importance and valueof gas storage in the UK." NOTES SSE owns and operates the UK's largest onshore gas storage facility at Hornseain East Yorkshire, which it acquired in 2002 for £132.7m. Nine man made saltcavities have been leached into a salt layer 1.8 kilometres below the surfacecreating 325 million cubic metres of gas storage space (or around 195 millionStandard Bundled Units). Gas can be withdrawn at a rate of 18 million cubic metres per day, theequivalent of the requirements of around four million homes. In 2005/06, SSE'sgas storage business at Hornsea delivered an operating profit of £27.3m, duringwhich the average achieved SBU price was 16.5 pence. SSE's joint venture with Statoil (UK), in which SSE is investing £150m, isdeveloping what will become the UK's largest onshore gas storage facility atAldbrough, which is adjacent to Hornsea. Enquiries to:Scottish and Southern EnergyAlan Young, Director of Corporate Communications 0870 900 0410Denis Kerby, Investor and Media Relations Manager 0870 900 0410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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