Centrica plans new gas storage facility

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The proposal is in partnership with Gaz de France and First Oil Plc and is aimed it turning the Bains gas field in the East Irish Sea into a dedicated seasonal storage facility that will be one fifth the size of Rough, the UK's largest gas storage site.

Centrica said that pre-development studies would run until early 2009 before a final investment decision is made to develop the project. Should it be given the go-ahead the facility would become operational for gas production and injection for the winter of 2011/12. The facility would have a capacity of up to 20 million cubic feet.

The proposed project would see the partly depleted Bains field converted into a storage facility with a 20 mile pipeline to the Barrow onshore terminal.

Centrica will hold a 52.8 per cent interest in the project, whilst Gaz de France and First Oil hold 34 and 13.2 per cent respectively.

Sam Laidlaw, chief executive of Centrica, said: "We believe Bains has real potential as a new gas storage facility, being close to existing infrastructure and having the right reservoir characteristics.

"As the UK becomes increasingly reliant on imported gas and flexibility from North Sea fields declines in the coming years, investing in much needed storage facilities, which will boost this country's security of supply, forms part of Centrica's long term programme of investing in a range of gas, power and renewable projects to supply our British Gas customers."

Centrica said that the UK has the lowest level of gas storage capacity out of the major EU economies, at only 5 per cent of annual demand.