Gas storage facilities are becoming increasingly important to secure future supplies of gas for our customers, our power stations and for the UK as a whole as our dependence on imported gas increases.

E.ON UK is currently working on two major underground gas storage schemes. The Holford Gas Storage facility in Cheshire is already under construction, and the Whitehill project in East Yorkshire is currently in planning.

We're working closely with our sister company, E.ON Ruhrgas   harnessing over 30 years of expertise and knowledge in gas storage, to develop, build and operate new facilities that will help protect us from the volatility of the gas market.

The need for gas storage in the UK

As a country we have relied on gas from the UK Continental Shelf (UKCS) since the 1970s, primarily extracted from the North Sea. But, while production from the UKCS is declining by an average of 7% every year, our gas demand is continuing to rise with 80% of gas predicted to be imported by 2015.

At present, the UK can only store around 4% of our annual gas consumption, compared to Germany and France who have the capacity to cover over 20% of their needs.

Relying on gas imports makes it difficult to ensure a supply/demand balance that aligns with seasonal and daily fluctuations, such as periods of high demand during a cold snap, so we believe that gas storage facilities will play a crucial role in stabilising energy prices for the UK.

In May 2006 the Secretary of State, Alistair Darling, recognised the national need for more gas storage facilities in his House of Commons Statement.