Revised gas storage plans set to be submitted

Proposals for a huge underground gas storage scheme on the Lancashire coast are set to be resubmitted, the UK subsidiary of a North American energy company has confirmed.

The original scheme was rejected last October by communities secretary Hazel Blears acting on the advice of a planning inspector and a technical assessor. They questioned both the environmental impact of the project and the geological modelling used to justify the plans involving caverns below the Wyre estuary at Preesall near Fleetwood.

The proposals, developed by Canatxx UK, were opposed by the county council, Wyre Borough Council and thousands of local residents who were particularly concerned about the health and safety implications of the £300m project.

The planning application is expected to be submitted in September. Paul Grimes, chief executive of the subsidiary, said: "This is a unique location with natural salt beds which are ideal to develop gas storage caverns."

He added: "Whilst we recognise that there are certain local concerns about the project and the impact it will have, we have been working hard with various experts and interest groups over the last few years to ensure that our application addresses and exceeds all the safety, environment and industrial requirements for a project of this national strategic significance."

If the scheme eventually goes ahead it would be the country's biggest onshore gas storage project. Grimes accepted that during the earlier inquiry questions were posed about safety, cavern collapse and the effect of old workings on the proposal. "Our application will address all those concerns," he said.

The company recently received permission to build a liquefied natural gas (LNG) terminal and regasification facility at Amlwch, Anglesey.

Read the Canatxx press release

Roger Milne

26 June 2008