Unbiased North Sea operator Kistos (AIM:KIST) has agreed to buy two onshore fuel storage websites from EDF Power for £25 million.
Kistos will assume operatorship of the Hill Prime Farm and Gap Home Farm websites, each situated in Cheshire.
The 2 websites have the potential to be repurposed for future vitality storage makes use of together with hydrogen.
Kistos mentioned the acquisition is consistent with its acquisition technique to pursue alternatives which “align with the vitality transition” and mentioned its entry into the fuel storage sector “gives enterprise variety to its upstream portfolio”. .
Hill Prime’s fuel capability is at present 17.8 million therms, with an ongoing programme to extend this quantity to 21.2 million therms.
At its present capability, Kistos mentioned Hill Prime accounts for 3.1% of the UK’s complete obtainable onshore fuel storage capability and as much as 11% of the UK’s versatile day by day fuel capability if known as upon.
Hill Prime is one among solely seven operational fuel storage belongings onshore within the UK andKistos mentioned the positioning “is of strategic significance for each the vitality transition and UK vitality safety”.
The Gap Home facility is at present non-operational, however Kistos mentioned with reactivation and additional improvement it might “materially” enhance its proportion of the UK’s complete onshore fuel storage.
Kistos to personal most versatile ‘battery’ within the UK
Kistos govt chairman Andrew Austin mentioned the corporate’s entry into the fuel storage market is a part of its progress technique.
“Not solely do these belongings complement our upstream UK belongings, however in addition they diversify our presence throughout the vitality worth chain with a foothold within the midstream market,” he mentioned.
“We look ahead to benefitting from the expertise of the present staff at these websites as we assume operatorship.
“Their specialist experience shall be extremely priceless as we search to maximise the potential of the belongings and consider all choices to broaden operations by way of different vitality storage sources reminiscent of compressed air or hydrogen.”
Mr Austin mentioned buying the fuel storage websites means “on essence, Kistos will personal one of the vital versatile “batteries” within the UK, very important for vitality safety and provide”.
Along with the newly acquired fuel storage websites, Kistos holds a number of working pursuits within the Better Laggan Space (GLA) within the West of Shetland in addition to a stake within the TotalEnergies-operated Shetland Gasoline Plant.
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