With the UK currently providing only five per cent of the annual gas demand, the new £100m investment at Caythorpe will be welcomed at a national level.
The conversion of the onshore field to a storage facility, with a possible capacity of 7.5 billion cubic feet.
The project will mean that Caythorpe will have significant withdrawal and injection capacity, complementing the nearby Rough facility offshore from Easington, which is currently the UK’s biggest storage facility.
With 40 per cent of UK gas currently being supplied by foreign stocks, the long-awaited project to increase storage capacity at Caythorpe will give UK customer’s security of supply; adding a possible five per cent to the UK’s limited gas storage facilities once up and running.
CSL’s plan to develop a mid-range gas storage facility at Caythorpe is currently on hold. This is due to the current reduced price volatility in the UK Gas Market which is a key driver to the value of the project. CSL continues to keep the Caythorpe project under review.