Press Release

Detailed engineering work on the Gateway gas storage facility, to be built offshore in the East Irish Sea, has started. AMEC, Parsons Brinckerhoff and Senergy have been appointed by Gateway Storage Company to undertake the front-end engineering design (FEED) work for both the offshore and onshore elements of the 1.5bn cubic metre underground storage scheme.

The work over the next 12 months will support a commitment to construction of the facility at the end of 2010 and enable the commencement of gas storage services for the UK market in 2014.

The £600m storage facility will add new capacity equal to approximately 30% of current UK storage capacity, sufficient to meet five days of Britain’s average gas demand.

Gateway will be built in salt caverns approximately 750m beneath the surface of the seabed and located 15 miles offshore, south west of Barrow-in-Furness. The Gateway facility will be connected to the National Gas Transmission System (NTS) via a new pipeline to a gas compression station adjacent to the existing Morecambe gas terminals at Barrow.

AMEC’s work will include offshore installations, pipelines, the onshore compression station at the Morecambe terminals and the connections into the National Grid. Parsons Brinckerhoff will advise Gateway on the salt cavern design and construction, and Senergy’s work will concentrate on the offshore infrastructure, installation, logistics and well designs. The project team has been mobilised and is based in Aberdeen.

Andrew Stacey, Director of Gateway Storage, said: “The detailed engineering design work, and the tender process for the main construction contracts that will follow later this year, will support a commitment to construction at the end of this year and the start of storage services during 2014. We are delighted to have the depth of experience that AMEC, Parsons Brinckerhoff and Senergy offer us and look forward to working with them in order to deliver the much needed Gateway facility.”

“Given the scale of the project, there is much work to do but Gateway Storage will bring storage capacity and deliverability to the UK energy market, and so help reduce price volatility and risk.”

Notes to Editors:

1. Gateway Storage (www.gatewaystorage.co.uk ) secured consent from the UK Government in November 2008 and from Barrow Council in June 2008, and a site licence agreement from the Crown Estate in 2007.

2. Gateway Storage is a company that was formed to develop the gas storage project and is managed by Stag Energy. Stag Energy (www.stagenergy.com ) is an independent company, headquartered in Edinburgh. The company, established in 2002, has extensive experience of managing the development, construction and operations of gas storage and power generation projects in the UK and overseas.

3. 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 BERR, highlighted a number of offshore areas suitable for salt caverns, including the Irish Sea and the Southern North Sea. In its report, the BGS specifically noted that Gateway’s site was located in one of the very best areas in the UK.

4. Senergy (www.senergyworld.com ) is a circa £80million ($120million) revenue energy services company with headquarters in Aberdeen, UK, and a network of global offices in the UK, Norway, Middle East, South-East Asia and Australia. Established in 2005, Senergy provides integrated energy services encompassing geosciences, reservoir engineering, geohazard assessment, marine site surveys, rig positioning, wells engineering and operations, project management and alternative energy solutions.

5. AMEC (LSE: AMEC) is a focused supplier of high-value consultancy, engineering and project management services to the world’s natural resources, nuclear, clean energy, water and environmental sectors. With annual revenues of over £2.6 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power & Process and Earth & Environmental businesses employ almost 22,000 people in around 40 countries worldwide (www.amec.com ).

6. Parsons Brinckerhoff (www.pbworld.com ) develops and operates infrastructure around the world, with 13,000 employees in the Americas, Europe, Africa, Middle East, Asia and Australia-Pacific regions. PB offers skills and resources in strategic consulting, planning, engineering, program/construction management and operations for all modes of infrastructure including transportation, power, community development, water and the environment.

For further information:
Gateway Storage Company Ltd
George Grant
T:         0131 550 3380 / 07810 851029
E :        This e-mail address is being protected from spambots, you need JavaScript enabled to view it
or
Paul Taylor (Taylor Keogh Communications)
T:         020 3170 8465
E:         This e-mail address is being protected from spambots, you need JavaScript enabled to view it
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