Power on doorsteps
Jul 31 2009 by Kelley Price, Evening Gazette
PLANS for a multi-million pound underground gas well are in the pipeline at a Tees Valley business park.
Egdon Resources will drill an 800 metre borehole on the margins of Kirkleatham Business Park, if planning permission is granted by Redcar and Cleveland Council.
The oil and gas exploration firm has reached an outline agreement to supply to nearby Wilton utility provider Sembcorp under the scheme, which could cost up to £6m.
A pipeline leading to Wilton will transport gas to Sembcorp’s plant. Up to 40 high end engineering jobs will be created during the construction phase of the project.
“We’re not sure at this stage how much gas there is in the structure, but we’re looking at a minimum of six months to about five years of supply,” said Egdon Resources managing director Mark Abbott.
“It’s small by North Sea standards, but the UK is importing more and more gas from overseas, there are pipelines coming from Norway and Russia. Any gas that can be found in the UK is beneficial and helps security in some small way.
“It’s in a good location, there is a significant energy user right on our doorstep, which makes it attractive to both parties.”
Gas was first detected at the site in the 1940s by Davy Exploration, a pre-runner to BP. Shell also carried out seismic tests there in the 1980s.
The gas will be used to power Sembcorp’s power station, which generates electricity and steam among other services for its industrial neighbours. Operations will be carried out by Sembcorp staff.
Egdon is currently undergoing Health and Safety Executive, registry and Environment Agency checks for the site, which is at the north end of the business park on Corfu Way.
Mr Abbott said work would cause minimal disruption to existing businesses at the park.
“The site is at least a few hundred metres from the nearest businesses and companies.
“We had some indication from the previous exploration companies that had drilled there, and we initially drove an exploration borehole at the site two years ago and found gas at a depth of 800 metres.
“It has taken us until now to gather additional seismic information and go through the necessary processes.
“We have already invested £2-3m and will invest a similar amount again to make it operational.
“Pressure - and how that depletes over time - will be measured so we can fully understand how much gas is present.”
Permission is also being sought to build two further boreholes if pressure information indicates there could be additional pockets of gas. Egdon Resources is leading the project, backed by four other partners.
Sembcorp - the main utility provider for the Wilton site - also operates a biomass power plant in addition to its conventional power station.
Egdon Resources also has operations across the UK and France, including North Yorkshire, the East Midlands, Dorset and Hampshire.
A decision by Redcar and Cleveland Council is expected by early September and work is planned during the first half of 2010.
