Future Gas Supplies and the need for Gas Storage

It is clear that there may be volatility in the future gas supplies and, hence, there is the need to re-engineer the UK’s gas infrastructure to accommodate this uncertainty. The UK has a disproportionately small amount of gas storage at present, with which to ride out the peaks and troughs. We can only store at present 4% of our annual gas needs, which can be compared with the 20-25% figure for some of our major European competitors. Gas storage is expensive to create and so a significant investment programme will be needed over the 10-15 years to redress the balance.

Underground gas storage can only be created in certain locations, the best of which are where there are deep salt layers. Gas travels slowly through pipelines and so it is important to locate the storage sites as close to the population centres as possible. Cheshire is such a location.
Stages of Controlled Solution Mining
With the foregoing in mind, it is appropriate to quote from the Secretary of State for Energy in his Statement to the House on 16 May 2006,

“…we need timely and appropriately sited gas supply infrastructure to be delivered by the market, because:

Great Britain is becoming increasingly dependent on gas imports, and requires new gas supply infrastructure to help ensure security of supply;
New projects enable extra supply and storage options if they proceed without avoidable delays;
There are limited locations currently suitable for much needed gas storage projects;
Onshore storage is needed to enable slow-moving gas to be available close to market when customers require it;
New energy infrastructure projects provide national benefits, shared by all localities.”

The creation of underground cavities in salt seams for gas storage is a well-proven technique which has been applied successfully in the UK for more than 40 years. It builds on the well-proven method of brine extraction by solution mining which has been used in Cheshire for many years. UK Safety Standards have ensured that the gas storage industry has had and will have a sound track record on safety.

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