Angus Energy and Trafigura Group have signed a Memorandum of Understanding that could see carbon dioxide or hydrogen storage at Angus Energy’s Saltfleetby gas field in Lincolnshire, or additional gas storage.
Within a year Trafigura and Angus will agree and set out specific milestones required to establish a gas storage facility at Saltfleetby. The MoU sets out the terms, and a model for co-operation, under which Trafigura and Angus intend to review technical and commercial feasibility of storage at Saltfleetby and agree commercial terms and schedule for any future storage project.
It is envisaged Trafigura, a commodity trader whose interests include oil, gas, minerals and metals, as well as renewable energy generation and clean energy technologies, would act as initial customer or offtaker of a proportion of the stored product.
Angus says volumetrically Saltfleetby is the UK’s largest onshore gas field and its largest potential subsurface porous rock storage reservoir.
Chief executive Richard Herbertsaid, “This project builds on the strategic relationship Angus has established with Trafigura with its new loan facility and gas sales from the Saltfleeby 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.”