Irish Firm Aims to Double U.K. Gas Storage Capacity

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Infrastructure developer dCarbonX (London, England) aims to build a new gas storage facility in the East Irish Sea that would boost the U.K.'s gas storage capacity by 50%.

The Bains site near Barrow-in-Furness, England, would provide 1.4 billion cubic metres (Bcm) of additional gas storage to the U.K.'s shrinking capacity, which the company pointed out is currently the lowest in the G7 at just 12 days' worth of average winter gas demand, compared with 90 days or more for Germany, France and Italy. The new gas storage facility would be located in the depleted Bains gas field, which sits 30 kilometers off the coast in water depths of just 20 meters. It is geologically suited for conversion into a depleted field storage facility and benefits from nearby pipeline infrastructure, "meaning it could be operational in under five years," subject to regulatory and investment approvals. It is also being engineered for conversion to hydrogen storage in the future.

dCarbonX is headed up by Irish billionaire Tony O'Reilly and backed by Europe's largest gas infrastructure operator Snam (Milan, Italy). dCarbonX secured a gas storage license for the Bains project in August and is hoping to make a final investment decision in 2027. Pre-front-end engineering and design (FEED) work has been completed and the company is currently tendering for FEED contracts for offshore and onshore work. Industrial Info is tracking four associated projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

The project comes at a time when half of the U.K.'s storage capacity is provided by Centrica's (Windsor, England) Rough facility in the North Sea. The utility plans to decrease the store's capacity this winter due to heavy financial losses. Earlier this year, Centrica, which owns British Gas, warned that the gas storage facility could be closed if the government doesn't financially support a £2 billion (US$2.7 billion) redevelopment of the site to allow it to store more gas and hydrogen. Centrica said the site is set to lose £100 million (US$134 million) this year, and as a result it will reduce storage and start producing more gas from the field.

Chief executive of dCarbonX Tony O'Reilly said: "The U.K. doesn't just have a market gap--it has a strategic risk. Gas is no longer just a commodity; it is the key transition fuel and an insurance policy for stable growth. As such, failure to address its essential role is a national security risk. Other countries are acting accordingly. We must do the same. Bains is a key strategic energy infrastructure. It's deliverable, scalable, and vital to keeping the U.K. secure in the years ahead and throughout the energy transition and beyond."

The company highlighted that gas "remains the backbone of the wider U.K. energy system", supplying over 80% of domestic heating and about 38% of electricity generation last year. This percentage grows dramatically during periods of low renewable output and gas is expected to play a significant role in U.K. energy for at least the next two decades. "Storage will be essential to balance intermittent renewables, buffer price spikes, and maintain stability," the company stated while O'Reilly claimed it is vital to reduce system risk and support the energy transition. "Bains is a viable project that addresses a known shortfall, and a strategic opportunity. We mustn't wait for another crisis to realise that. Without domestic gas storage, the UK is exposed to global gas market volatility, especially during winter. The question isn't whether we need more storage, it's whether we're serious about building it."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).