ScottishPower Sells UK Gas Storage Project for £96 million
ScottishPower has sold its underground natural gas storage project at Byley to E.ON UK plc in a £96 million transaction that also includes ScottishPower securing a 15-year storage contract for a substantial portion of the planned capacity.
The project, which gained final planning approval last year, will see around six billion cubic feet of gas stored in up to eight underground caverns in Cheshire. Byley is designed as a highly flexible storage facility with capacity that will exceed ScottishPower's own requirements.
Securing a long-term storage contract combined with the sale presents an attractive opportunity to immediately maximise value from the development and also to secure access to reliable, high deliverability gas storage. This is essential to managing ScottishPower's gas portfolio and meeting our customers' requirements, particularly as the UK becomes a net importer of gas.
Charles Berry, ScottishPower Executive Director UK, said: "Having guided the project through its complex planning phase, we are delighted to have gained an excellent price for the asset and secured our long-term gas storage requirements in the UK."