Wilton site owner Sembcorp strikes gas well deal

Feb 24 2010 by Kelley Price, Evening Gazette

WILTON site owner Sembcorp has struck a deal to supply gas for its power station from a newly developed multi million pound well next-door to the site.

Gas exploration company Egdon Resources will soon begin construction on the £6m underground gas project at Kirkleatham Business Park, which sits just outside Wilton’s fenceline.

It’s hoped once gas supplies have been used up, the field can provide much needed storage to help improve the UK’s gas security woes.

Sembcorp’s £36m Gas Turbine came online last year to supply power and steam to the Ensus bioethanol plant and its industrial neighbours.

Egdon will drill down 800 metres and transport the gas directly to the site via an underground pipeline. Sembcorp will be the sole customer for the project.

The real plus point, though, is the site’s potential for gas storage, claims Sembcorp’s commercial manager Bob Stonehouse.

“Gas storage is a valuable commodity in the UK at the moment, the North Sea fields are declining and security is becoming more of an issue,” he said.

“We are excited by the potential for gas storage, it would be a big asset for Wilton if it could be realised. In the long term, there will be an evaluation phase to see whether the site is suitable for storage - there are no guarantees, but there’s an option for Sembcorp to be involved in that.”

He added gas storage would have real strategic value, allowing supplies to be bought in during low pricing periods.

The site, he claimed, was likely to contain up to £40m worth of gas by current market prices and the aim was to be up and running prior to quarter four to take advantage of higher winter gas prices.