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Exceed Centrica Rough contract win could create 30 jobs

Simon Osuji by Simon Osuji
November 4, 2024
in Energy
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Exceed Centrica Rough contract win could create 30 jobs
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Well and reservoir management firm Exceed has secured a contract with Centrica Energy Storage for the redevelopment of the Rough gas storage field.

Exceed said its role in the initial stages of the project, which is exploring converting the Rough field into a hydrogen storage facility, could create more than 30 jobs.

Centrica (LSE:CNA) reopened the Rough field in 2022 amidst the European gas crisis after it was initially shut down in 2017.

The Aberdeen-headquartered firm said the RoughH2 project at the UK’s largest gas storage facility could eventually allow for storage of up to 260 billion cubic feet of gas.

Exceed said the project would be “pivotal” for UK energy security and lowering energy costs.

Meanwhile, the completed hydrogen storage facility could “ultimately create approximately 4,000 jobs”, Exceed said.

Exceed managing director Ian Mills said RoughH2 is “critical to the success of the UK’s energy transition”.

Ian Mills, managing director, Exceed.

“This contract makes clear the necessity for, and transferability of, well and reservoir management capabilities throughout that journey, and we take pride in our involvement in this landmark project,” Mills said.

Exceed’s workscope will include the provision of integrated multi-discipline subsurface engineering, field redevelopment planning and delivery, and well project management of the design.

The FEED contract award to Exceed follows the successful completion of a Rough Redevelopment engineering pre-FEED phase, and a recent eight-month integrated CCS pre-FEED transition engineering study in support of the Spirit Energy and CES Morecambe Net Zero (MNZ) cluster.

Aberdeen’s Wood is also a ‘Tier One’ partner on the CES RoughH2 project, which has yet to reach a final investment decision.

Rough hydrogen storage concerns

The UK government is assessing options for gas and hydrogen storage amid concerns a lack of supply flexibility could leave the country’s gas system ‘exposed‘.

There are currently eight geological gas storage sites across Great Britain, containing approximately 3.1bcm in capacity and maximum deliverability rates of 124mcm/day.

Five of these gas storage sites are in salt caverns while the remaining three are depleted oil and gas fields, with the Centrica’s Rough field in the North Sea the only site located offshore.

The British Geological Survey estimates the UK could store up to 3,000 TWh of hydrogen.

Meanwhile, Hydrogen UK estimates the country could need 3.5 TWh of hydrogen storage capacity online by 2030

However, there are concerns that depleted oil and gas fields like Rough will not be suitable for hydrogen storage following a study by the University of Aberdeen.

The research concluded the onshore Cousland gas field in Midlothian fails to meet the criteria for safe subsurface hydrogen storage and recommended it should not be used.

The study could have implications for hydrogen storage plans at similar offshore sites, including Centrica’s Rough field.

 

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