Costain, Geostock for Ineos gas storage project

Runcorn, UK -- Ineos Enterprises has awarded two key contracts for the development of its Stublach Gas Storage Project (SGSP), Cheshire. The facility will comprise 28 underground salt cavities with an aggregate capacity of around 400 million cubic metres, making it one of the largest such projects in the UK.

Engineering and construction group Costain has won the Front End Engineering Design contract, which includes developing the design for the brine, water and gas infrastructures. Underground storage company Géostock, meanwhile, is to provide with consultancy design services for the 28 underground salt cavities, which form the basis of the facility.

The first phase of the SGSP facility is due to become operational by 2012, with all 28 cavities in service by 2018 giving a gas deployment rate of 12 million therms per day, said Ineos. The company did not disclose a value for either contract.

According to Harry Deans, CEO of Ineos Enterprises, 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,” said Deans in a 15 Jan statement.