The UK Government has given approval to Halite Energy for its development of 19 underground gas storage caverns in Preesall, Lancashire (United Kingdom).
The Department of Energy and Climate Change approved the plans following examination of the project by the Planning Inspectorate (formerly the Infrastructure Planning Commission).
To be located in Preesall, Lancashire, the project consists of the development of up to 19 purpose-built caverns, which will store 900 million cubic meters of natural gas.
The vast majority of the site will be 1,000 feet underground, with small number of above ground buildings to operate the facility.
Planned to increase the UK's gas storage capacity by 20 %, the project has a total investment cost of approximately £660 million (US$1.023 billion).
Keith Budinger, Chief Executive of Halite Energy, has commented:
"Today's decision is the culmination of more than four years of detailed work to demonstrate that this facility can be built and operated safely. We look forward to working with the local community to ensure that the people and businesses of Lancashire benefit from our project."
Storing gas underground in salt caverns is a proven industry which is well established across the world. There are over 70 underground gas storage facilities globally, with four operational projects currently in the UK.