Kistos Completes Acquisition of UK Onshore Gas Storage Assets
(P&GJ) — Kistos Holdings plc has finalized the purchase of 100% of EDF Energy (Gas Storage) Ltd.'s share capital from EDF Energy (Thermal Generation) Limited, as initially announced on February 20, 2024.
The acquisition includes two onshore gas storage facilities in the UK, Hill Top Farm and Hole House Farm, at a total cost of £25 million ($31 million) funded from existing cash resources.
With government approval under the National Security and Investment Act (NSIA), this move marks Kistos' venture into the gas storage sector, broadening its business scope beyond upstream operations.
Hill Top Farm currently boasts a working gas capacity of 17.8 million therms, with plans underway to increase it to 21.2 million therms in the near future. The facility, accounting for 3.1% of the UK's onshore gas storage capacity, possesses the capability to deliver up to 11% of the UK's flexible daily gas capacity when needed, owing to its fast-cycle nature.
Meanwhile, operations at the Hole House facility, dormant since 2018, offer Kistos an opportunity to substantially increase its share of the UK's onshore gas storage capacity upon reactivation. Reestablishing operations at this site is a priority post-completion.
As the UK transitions to greater reliance on intermittent renewable energy sources, the demand for fast-cycle storage assets like these gas storage facilities is expected to rise, positioning them as vital components of the energy transition.
Furthermore, both sites hold potential for repurposing into future energy storage applications, including compressed air or hydrogen storage, with preliminary concept studies already underway.
Kistos has assumed operational control of both facilities, with Executive Chairman Andrew Austin expressing optimism about the value-enhancing opportunities they present. Looking ahead, the company will explore options to expand its operations into other energy storage sectors such as compressed air or hydrogen.
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