15 Jan 2007
INEOS
ENTERPRISES ANNOUNCES KEY CONTRACT AWARDS FOR STUBLACH GAS STORAGE
FACILITY IN CHESHIRE
INEOS Enterprises has today signed a number
of key contracts for the development of its Stublach Gas Storage
Project (SGSP), Cheshire.
The contract awards follow granting of final
planning permission for the project by Cheshire County Council
in December 2006 after ratification of the decision by the Department
for Communities and Local Government.
The Front End Engineering Design contract,
the value of which is not disclosed, has been awarded to international
engineering and construction group Costain. Costain will now
work with INEOS Enterprises to develop the design for the brine,
water and gas infrastructures.
Underground storage experts Géostock have been awarded
the contract to provide INEOS Enterprises with consultancy design
services for the 28 underground salt cavities, which form the
basis of the facility.
Comments Harry Deans, CEO INEOS Enterprises: "We are delighted
to be able to announce these major contract awards, which mark
the next phase of this strategically important project."
The SGSP will consist of 28 underground salt cavities with an
aggregate capacity of around 400 million m3, making the development
one of the largest permitted gas storage projects in the UK.
It is expected that the first phase of the facility will be
operational by 2012, with all 28 cavities in service by 2018
giving a gas deployment rate of 12 million therms per day.
In addition to the engineering and design
contracts, INEOS Enterprises has retained Lehman Brothers to
provide financial and commercial advice for the project.
Continues Mr Deans: "We are delighted to have Costain,
Géostock and Lehman Brothers on board to work with us
to drive the project forward.
"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."
ENDS
For further information please contact
the INEOS Enterprises Press Office:
Craig Welsh
Telephone: 01928 511528
Fax: 01928 569459
Email: craig.welsh@ineoschlor.com
1. INEOS Enterprises consists of a group
of eight businesses, each a leader in its area of activity.
The Company is focussed on the developing needs of customers
and rapid growth through investment in new products and manufacturing
facilities or by acquisition. The INEOS Enterprises spirit is
entrepreneurial and the Company is always seeking to invest
in new market opportunities. The Stublach Gas Storage Project
is highly compatible with our existing infrastructure and builds
on over 70 years of proven safe solution mining and over 20
years experience in the underground storage of natural gas and
ethylene.
2. The Costain Group is one of the UK's leading engineering
and construction companies and is seen as an automatic choice
for projects requiring innovation, initiative, teamwork and
high levels of managerial skill. Costain Oil, Gas & Process
provides engineering services for new facilities and revamps
including conceptual design studies, Front End Engineering Design
(FEED) and Engineering Procurement and Construction (EPC).
3. Géostock is an engineering consultancy company dedicated
to the study, design, construction management and operation
of underground storage for hydrocarbon product. Specifically,
Géostock has extensive experience in storage in salt
caverns, developed during forty years operation throughout Europe.
The Company is also active in the United States and has most
recently been involved in developing projects for the storage
of gas in salt caverns in China.
4. Lehman Brothers, an innovator in global finance, serves the
financial needs of corporations, governments and municipalities,
institutional clients, and high net worth individuals worldwide.
Founded in 1850, Lehman Brothers maintains leadership positions
in equity and fixed income sales, trading and research, investment
banking, private investment management, asset management and
private equity. The Firm is headquartered in New York, with
regional headquarters in London and Tokyo, and operates in a
network of offices around the world.
