Independent North Sea operator Kistos (AIM:KIST) has agreed to purchase two onshore gas storage sites from EDF Energy for £25 million.
Kistos will assume operatorship of the Hill Top Farm and Hole House Farm sites, both located in Cheshire.
The two sites have the potential to be repurposed for future energy storage uses including hydrogen.
Kistos said the purchase is in line with its acquisition strategy to pursue opportunities which “align with the energy transition” and said its entry into the gas storage sector “provides business diversity to its upstream portfolio”. .
Hill Top’s gas capacity is currently 17.8 million therms, with an ongoing programme to increase this volume to 21.2 million therms.
At its current capacity, Kistos said Hill Top accounts for 3.1% of the UK’s total available onshore gas storage capacity and up to 11% of the UK’s flexible daily gas capacity if called upon.
© Supplied by TotalEnergiesHill Top is one of only seven operational gas storage assets onshore in the UK andKistos said the site “is of strategic importance for both the energy transition and UK energy security”.
The Hole House facility is currently non-operational, but Kistos said with reactivation and further development it could “materially” increase its proportion of the UK’s total onshore gas storage.
Kistos to own most flexible ‘battery’ in the UK
Kistos executive chairman Andrew Austin said the company’s entry into the gas storage market is part of its growth strategy.
“Not only do these assets complement our upstream UK assets, but they also diversify our presence across the energy value chain with a foothold in the midstream market,” he said.
“We look forward to benefitting from the experience of the existing team at these sites as we assume operatorship.
“Their specialist expertise will be highly valuable as we seek to maximise the potential of the assets and evaluate all options to expand operations via other energy storage sources such as compressed air or hydrogen.”
Mr Austin said acquiring the gas storage sites means “on essence, Kistos will own one of the most flexible “batteries” in the UK, vital for energy security and supply”.
In addition to the newly acquired gas storage sites, Kistos holds several working interests in the Greater Laggan Area (GLA) in the West of Shetland as well as a stake in the TotalEnergies-operated Shetland Gas Plant.
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