AIM-listed Angus Energy has entered into a Memorandum of Understanding with a subsidiary of Trafigura Group with regard to gas storage at the Company's Saltfleetby Gas Field in Linconlnshire - volumetrically the UK's largest onshore gas field and its largest potential subsurface porous rock storage reservoir.
The Trafigura group is one of the world's leading international commodity traders engaging in the trading of physical commodities including oil, gas, minerals and metals, as well as renewable energy generation and clean energy technologies.
As part of the wider co-operation between Trafigura and Angus, the parties wish to leverage their complementary capabilities and collaborate on an underground gas storage facility in the UK, for natural gas, CO2, or hydrogen, and the offtake by Trafigura of pre-agreed capacity of the proposed gas storage facility.
The Memorandum sets out the terms, and a model for co-operation, under which Trafigura and Angus intend to review technical and commercial feasibility of storage at Saltfleetby and agree commercial terms and schedule for a future storage project. Specifically it is envisaged Trafigura would act as initial customer or offtaker of a proportion of the stored product subject to specifications as to quality.
Within 12 months of the date of this Memorandum, Trafigura and Angus will agree and set out specific milestones, subject to technical and commercial feasibility. required to establish a gas storage facility at Saltfleetby.
Richard Herbert, CEO, comments: 'This project builds on the strategic relationship Angus has established with Trafigura with its new loan facility and gas sales from the Saltfleeby Field. The gas storage project has the potential to facilitate the United Kingdom's transition from carbon heavy fuels to energy sources with a lower environmental impact, while making attractive commercial returns for shareholders.'
Source: Angus Energy
