Press Release


A proposed £500m offshore LNG import terminal and underground gas storage facility, located in the Irish Sea, will act as a "Gateway to Europe" and provide competitively priced gas and additional security of gas supply to the UK and Irish energy markets. The Gateway project is being developed by British energy company, Stag Energy, and will contribute to the UK Government’s twin policy objectives of security and diversity of energy supply.

Drawing upon experience of similar US offshore projects, and in line with the British Government’s announcement last month (January 13th) that new technologies for offshore underground storage of gas should be developed, Stag Energy's Gateway project will bring additional gas supplies to the UK and Irish markets, in conjunction with offshore underground gas storage services. As the Atlantic Basin LNG market develops, the Gateway project is designed to reduce gas price volatility.

George Grant, Stag Energy Director said: “The development of offshore underground gas storage is essential for the future security of gas supplies in the UK and Ireland, and this view is shared by the UK Government. The location of LNG import facilities offshore and the use of underground gas storage, avoids reliance on surface storage tanks and the need for LNG tankers to moor and unload in coastal ports. The Gateway concept and design is less susceptible to accidents or acts of terrorism, and its offshore location won't impact upon local communities.”

The Gateway project is targeted for commercial operation soon after 2010 which is when much of the UK North Sea gas production will have ceased. It will have the capacity to store more than 1.1billion cubic metres of gas, equivalent to approximately two days of Britain’s winter peak demand.

Stag Energy’s LNG import terminal and storage project will be located in the East Irish Sea, south west of the gas terminal at Barrow-in-Furness, and will be connected to the UK’s gas transmission network via a new 25km gas pipeline.

George Grant added: "The location of the Gateway project is designed to capitalise on existing offshore expertise and facilities from the Barrow port and make use of the significant gas infrastructure that is coming to the end of its useful life. The Gateway project will extend the use of many of the facilities in Barrow and provide new employment opportunities to those working in the oil and gas sector."

Notes to Editors:

1. In the House of Commons debate on Security of Energy Supply (January 12th 2006), Trade Secretary Alan Johnson told MPs that “over the next decade, companies will be able to use new technology to create salt caverns offshore and store gas in them. There is strong potential for gas storage in a number of geological formations offshore, in areas such as the Irish Sea and the southern North Sea. That could significantly add to the UK's gas supply capacity.”

2. The DTI’s press statement of 13th January 2006 (“Undersea salt caverns to help boost gas supply”), Alan Johnson said: “The measures I propose (new legislation) will put the UK at the forefront of gas storage technology and secure increased gas supplies for the UK……these measures deliver one of our 2003 White Paper goals; to maintain the reliability of energy supplies”.

2. Stag Energy ( has secured a licence with the Crown Estate, and is progressing detailed planning consents with the Department of Trade and Industry (DTI), and the Department of Environment Fisheries and Rural Affairs (DEFRA).

3. Stag Energy is an independent UK based energy company, headquartered in Edinburgh. Established in 2002, its primary business focus is on the development of underground gas storage, LNG import terminals, and gas-fired power generation. Stag Energy’s management draws on a depth of experience in the energy sector having been involved in delivering these types of projects to the UK market over the last 20 years.

4. Storing gas in salt caverns enables firms to retrieve gas rapidly to cope with spikes in peak demand. The British Geological Survey, in a report commissioned by the DTI, highlighted a number of offshore areas suitable for salt caverns, including the Irish Sea and the Southern North Sea. Salt caverns have been used to store liquid petroleum gas (LPG) for many years, but the technique is relatively recent for pressurized natural gas.

For further information:

Stag Energy (
George Grant or Andrew Stacey
T: 0131 718 4258 / 07810 851029
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This e-mail address is being protected from spambots, you need JavaScript enabled to view it


Paul Taylor (Taylor Keogh Communications)
T: 020 8487 8288 / 07966 782611
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