A gas storage project has been given the green light during the ongoing energy crisis.
Located off the coast of Northern Ireland, Islandmagee Energy’s project is projected to hold around 500 million cubic metres of natural gas and provide a security of supply during peak demand for up to two weeks for the country.
The UK only has 1% of its annual gas demand in storage, giving it one of the lowest gas storage capacities in Europe. This has left the UK much more susceptible to supply issues than other European nations, which hold as much as 30% of their annual demand in storage.
Once fully developed and operational, Islandmagee’s project is estimated to hold more than 25% of the UK’s storage capacity.
The project is also expected to inject £7 million into the local area each year, providing 400 direct jobs and up to 1,200 indirect jobs.
John Wood, CEO of Islandmagee Energy’s parent company, Harland & Wolff, said: “This is good news for consumers and businesses in the UK who are currently experiencing distressing hikes in energy prices and fears of potential blackouts as gas and power grids face peak demand stresses during the winter months.
“With the current energy supply crisis, everyone now understands just how important gas storage is to secure supply and protect against extreme volatility in gas and power prices in the UK.”