AIM-listed UK Oil & Gas (UKOG) has announced that its wholly-owned subsidiary UK Energy Storage ('UKEn') has executed a Memorandum of Understanding ('MOU') with National Gas Transmission PLC ('National Gas'), the nation's principal gas pipeline operator, transporting gas to power stations, industries and 24 million homes. National Gas is developing the national 100% hydrogen pipeline system, Project Union, aimed at connecting future centres of hydrogen production, storage and consumption.
This MOU sets out both parties' intent to collaborate on the development and implementation of Project Union and its direct connection to UKEn's planned onshore salt cavern hydrogen storage facilities in East Yorkshire and South Dorset. The collaboration will also support and strengthen both company's activities related to securing government revenue support via the Hydrogen Transport and Hydrogen Storage Business Model allocation rounds, now scheduled to commence in H1 2026.
National Gas recognises the criticality of connecting Project Union's pipelines to large scale hydrogen storage, such as UKEn's, to buffer supply and demand and thereby enable effective pipeline operations.
Project Union's first phase, scheduled for operation by 2032, aims to connect the East Coast hydrogen cluster (Teesside to Humberside) with an envisaged routing to connect with UKEn's East Yorkshire hydrogen storage project.
National Gas and UKEn both recognise that UKEn's planned South Dorset storage would be critical to facilitate Project Union's connection to the south of England. The South Dorset project being, to date, the sole planned national scale hydrogen storage node in southern England.
Both parties also recognise that the connection of hydrogen storage facilities to transportation pipelines, such as those planned by UKEn and National Gas, will be essential to the effective future operation of the UK's hydrogen network.
Stephen Sanderson, UKEn's Chief Executive, commented:
'We regard this MOU as an essential building block towards achieving our mutually shared ambition of creating a joined-up hydrogen economy across the UK, both north and south. We look forward to working with National Gas and to the day that Project Union links seamlessly with UKEn's planned Yorkshire and Dorset hydrogen storage.'
Donald Oleforo, Head of Hydrogen Business Development, National Gas, commented:
'At National Gas, we are committed to working together with industry, government, regulators to develop the core hydrogen network that will facilitate Britain's place as a world-leader in hydrogen production and storage. This important industry partnership with UKOG is recognition of this potential and marks our joint commitment to delivery.'
See also: UKOG announces successful funding for UKEn Hydrogen projects
Source: UKOG
