Hill Top Farm Gas Storage Facility Enhances Capacity and Revenue Potential, Reports Kistos

Kistos' Hill Top Farm gas storage facility has successfully increased its 'working gas' capacity by 24% to 22 million therms following a soft cycling relaxation trial, boosting projected revenues from intrinsic seasonal trades and extrinsic trading. The trial, overseen by independent geotechnical experts, converts 4.2 million therms from cushion gas to working gas, aligning with the original design and maximizing sales opportunities. Evaluation of Hole House Farm's re-commissioning is underway, with potential for one-third of the cushion gas required compared to Hill Top.

Introduction:

Kistos, a North Sea dealmaker led by Andrew Austin, has recently acquired two major onshore gas storage facilities from EDF Energy for £25 million [1]. The facilities, named Hill Top Farm and Hole House Farm, are currently undergoing enhancement programs to boost their working gas capacity and contribute to the UK's energy transition. This article will delve into the recent developments and potential implications for Kistos and the broader energy sector.

Increased Capacity and Enhanced Flexibility:

Hill Top Farm, with a current working gas capacity of 17.8 million therms, is undergoing an ongoing program to increase this volume to 21.2 million therms [1]. The relaxation trial, overseen by independent geotechnical experts, successfully converted 4.2 million therms from cushion gas to working gas, aligning with the original design [2]. This expansion is expected to boost projected revenues from intrinsic seasonal trades and extrinsic market fluctuations [1].

Furthermore, Hill Top's fast cycle nature allows it to deliver up to 11% of the UK's flexible daily gas capacity if called upon [1]. This enhanced flexibility is crucial in addressing the challenges of an increasingly volatile energy market and supporting the energy transition.

Repurposing and Expansion Opportunities:

Both facilities have the potential to be repurposed for future energy storage uses, such as the storage of compressed air or hydrogen [1]. Concept studies are underway to evaluate the feasibility of these options, potentially expanding Kistos' presence in the energy storage sector.

Aligning with the Energy Transition:

Kistos' acquisition of these gas storage facilities aligns with the company's focus on assets that support the energy transition [1]. As the world shifts towards renewable energy sources, the need for flexible and responsive storage solutions will continue to grow. Kistos' entry into the gas storage sector positions the company well to capitalize on this trend and contribute to a more resilient and sustainable energy system.

Conclusion:

Kistos' successful acquisition of two major onshore gas storage facilities and the ongoing expansion of their working gas capacity are crucial steps in the company's growth and its commitment to supporting the energy transition. With potential opportunities for repurposing and expansion, Kistos is well-positioned to capitalize on the evolving energy landscape and contribute to a more resilient and sustainable future.

References:

[1] "Kistos completes £25m purchase of two major gas storage facilities," AGCC, September 27, 2022. https://www.agcc.co.uk/news-article/kistos-completes-25million-gas-storage-deal

[2] "Kistos announces acquisition of EDF Energy (Gas Storage) for £25m," Offshore Technology, September 27, 2022. https://www.offshore-technology.com/news/kistos-uk-onshore-gas/