INEOS Enterprises Announces Key Contract Awards for Stublach Gas Storage Facility in Cheshire
INEOS Enterprises has today signed a number of key contracts for the development of its Stublach Gas Storage Project (SGSP), Cheshire.
The contract awards follow granting of final planning permission for the project by Cheshire County Council in December 2006 after ratification of the decision by the Department for Communities and Local Government.
The Front End Engineering Design contract, the value of which is not disclosed, has been awarded to international engineering and construction group Costain. Costain will now work with INEOS Enterprises to develop the design for the brine, water and gas infrastructures.
Underground storage experts Géostock have been awarded the contract to provide INEOS Enterprises with consultancy design services for the 28 underground salt cavities, which form the basis of the facility.
Comments Harry Deans, CEO INEOS Enterprises: “We are delighted to be able to announce these major contract awards, which mark the next phase of this strategically important project.”
The SGSP will consist of 28 underground salt cavities with an aggregate capacity of around 400 million m3, making the development one of the largest permitted gas storage projects in the UK. It is expected that the first phase of the facility will be operational by 2012, with all 28 cavities in service by 2018 giving a gas deployment rate of 12 million therms per day.
In addition to the engineering and design contracts, INEOS Enterprises has retained Lehman Brothers to provide financial and commercial advice for the project.
Continues Mr Deans: “We are delighted to have Costain, Géostock and Lehman Brothers on board to work with us to drive the project forward.
“The shortage of UK gas storage facilities and permitting restrictions have been clearly highlighted by government and industry alike, making this project vital to the future security of UK energy supplies. In addition to progressing engineering and design work we believe the imperative now is to further explore the various commercial opportunities available to bring this project to fruition as early as possible, in the interests of both industrial and domestic consumers.”
For further information please contact:
Craig Welsh, INEOS Enterprises Press Office
Phone: 01928 511528