24th May 2007 16:43
Scottish & Southern Energy PLC24 May 2007 EXTENSION OF GAS STORAGE DEVELOPMENT AT ALDBROUGH Scottish and Southern Energy plc ("SSE")and Statoil (UK) Ltd have today securedconsent from East Riding of Yorkshire Council to increase the gas storagecapacity at the Aldbrough site beyond that currently under development. The companies are already developing nine storage caverns at Aldbrough, with acapacity of 420 million cubic metres (mcm), and commissioning of the first ofthem is expected to get under way before the end of this year. It will becomethe UK's largest onshore gas storage facility. Subject to the conclusion of an agreement under Section 106 of the Town andCountry Planning Act, the companies now have consent to develop a further ninegas storage caverns at Aldbrough, taking the total at the site to 18 and thetotal capacity to over 800mcm. After the completion of the extension, thefacility will be able to provide enough gas in a day to supply around 13 millionhomes. SSE is investing around £150m in the first phase of the Aldbrough development,out of a total of around £225m. The extension will largely be under ground, andthe intention is to use above ground facilities already on site, although someadditional development will be required. It is expected that its cost will besimilar to the first phase of the development. SSE will contribute 50% of thecost of the extension in return for ownership of 50% of the capacity. On completion of the extension, SSE will own over 800mcm of gas storagecapacity, including its share of joint ventures. This includes its existing gasstorage facility at Hornsea, which is adjacent to Aldbrough and which itacquired in 2002. Ian Marchant, Chief Executive of SSE, said: "The Energy White Paper showed that gas storage is a central part of the UK'sstrategy for handling more imports of gas and so this is a very importantbusiness. Construction of the extension will help to ensure that the UK can meetgas demand during periods of high energy usage, and will be a central part ofour investment programme going forward." Enquiries to: Scottish and Southern Energy plcJustyn Smith - Head of Media Relations + 44 (0)870 900 0410Sharron Miller-Mckenzie - Press Office Manager + 44 (0)870 900 0410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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