Angus Energy plc has signed a memorandum of understanding with a subsidiary of Trafigura Group Pte Ltd for gas storage at its Saltfleetby gas field in Lincolnshire.
OFF-TAKE
Angus believes the site to be “volumetrically the UK’s largest onshore gas field and its largest potential subsurface porous rock storage reservoir”.
Both parties will also collaborate on an underground gas storage facility in the UK, for natural gas, CO2, or hydrogen, and the offtake by Trafigura of pre-agreed capacity of the proposed gas storage facility.
Trafigura and Angus intend to review technical and commercial feasibility of storage at Saltfleetby and agree commercial terms and schedule for a future storage project.
Angus said that Trafigura would act as the initial customer of a proportion of the stored product subject to specifications of quality.
Within 12 months of the MoU’s date, the companies will agree and set specific milestones, subject to technical and commercial feasibility, to establish a gas storage facility at Saltfleetby.
Angus chief executive Richard Herbert added: “This project builds on the strategic relationship Angus has established with Trafigura with its new loan facility and gas sales from the Saltfleetby field.
“The gas storage project has the potential to facilitate the United Kingdom’s transition from carbon heavy fuels to energy sources with a lower environmental impact, while making attractive commercial returns for shareholders.”
Trafigura is a leading international trader in physical commodities including oil, gas, minerals and metals, renewable energy generation and clean energy technologies.