25th Sep 2006 11:00
Scottish & Southern Energy PLC25 September 2006 CONSENT SOUGHT FOR EXTENSION TO ALDBROUGH GAS STORAGE FACILITY Scottish and Southern Energy, in a joint venture with Statoil (U.K.) Ltd, isseeking consent to increase the storage capacity at the new Aldbrough GasStorage facility in Yorkshire. SSE and Statoil (U.K.) Ltd have acquired land adjacent to the existing Aldbroughsite and consent is being sought from East Riding of Yorkshire Council todevelop a further nine gas storage caverns at the facility, which is currentlyunder development. This will approximately double the amount of gas that can bestored at the facility. The extension will largely be under ground, and will make use of above groundfacilities already present on site; limited additional above ground developmentwill be required. The government's recent report on the Energy Review stated: "As the productionof our indigenous supply of gas continues to decline ... there is an increasingneed for gas supply infrastructure such as gas storage." Construction of theextension to the Aldbrough facility, which is adjacent to SSE's existing storageinstallation at Hornsea, will help ensure that the UK can meet gas demand duringperiods of high energy usage. SSE's original joint venture with Statoil (U.K.) Ltd at Aldbrough, in which SSEis investing £150m, out of a total cost of £250m, is continuing to make goodprogress. This first part of the development will have a total capacity ofaround 420million cubic metres (mcm), of which SSE will have the ownershipinterest in 280mcm. The second part of the development will add a further 420mcmof capacity, of which SSE will have the ownership interest in 210mcm. The work at the proposed extension to Aldbrough is expected to cost less thanthe current development. SSE will contribute 50 per cent of the cost of theextension. Ian Marchant, Chief Executive of SSE said: "Our Aldbrough facility as it standswill be the UK's largest onshore gas storage site. Extending the site will givethe country even more gas supply security with minimal additional developmentabove ground. "During the consent process, we'll be working with the local community to ensurethat people and businesses are kept well informed about our plans. We've beengrateful to have the support of local residents during the development of thefirst 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 ExchangeRelated Shares:
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