27th Mar 2008 07:00
Centrica begins work on proposed new offshore gas storage facility - UK's firstfor 25 years Centrica plc, the parent company of British Gas, today announced that it isproposing to create the UK's first offshore gas storage facility for over 25years. The proposal, with partners Gaz de France and First Oil plc, will focuson a development study to convert the Bains gas field, in the East Irish Sea,into a dedicated seasonal storage facility nearly one fifth the size of Rough,the UK's largest gas storage site. Pre-development studies will run until early 2009, before a final investmentdecision is made to develop the project. If progressed, the facility could beavailable to come online for gas production and injection in the winter of2011/12, with a storage capacity of up to 20 billion cubic feet (bcf). The Bains project proposes to convert the existing partly depleted Bains field,eight miles north east of Centrica's South Morecambe field, to a storagefacility with a dedicated twenty mile pipeline to the Barrow onshore terminal. Anew unmanned platform and additional compression facilities would be required.Reservoir characteristics of the existing Bains field indicate a storagefacility could offer significant flexibility to inject and produce gas at shortnotice. Centrica, which operates the Bains field alongside its Morecambe fields, willproject manage the development on behalf of the partners - Centrica (52.8%), Gazde France (34%), First Oil (13.2%). Sam Laidlaw, Chief Executive of Centrica, said: "We believe Bains has realpotential as a new gas storage facility, being close to existing infrastructureand having the right reservoir characteristics. "As the UK becomes increasingly reliant on imported gas and flexibility fromNorth Sea fields declines in the coming years, investing in much needed storagefacilities, which will boost this country's security of supply, forms part ofCentrica's long term programme of investing in a range of gas, power andrenewable projects to supply our British Gas customers." Notes: 1/ The UK has the lowest level of gas storage capacity of major EU economies, ataround 5 per cent of its annual demand \* TEnquiries: Centrica Investor Relations: + 44 (0) 1753 494900Centrica Media Relations:Andrew Hanson + 44 (0) 1753 492551\* T Copyright Business Wire 2008Related Shares:
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