The UK’s total gas storage capacity is set for a 15% boost after the government approved WINGAS Storage’s proposals to convert its Saltfleetby onshore gas field into an underground gas storage facility, reports Utility Week.

Saltfleetby in Lincolnshire is the UK’s biggest onshore gas field and will provide between 700 million to 800 million cubic metres of new gas storage capacity and was given consent following a public inquiry.

Energy minister Charles Hendry commented:

“This new project will provide the UK with new and much-needed gas storage. As the UK becomes increasingly dependent on imported gas, this Government has made it a priority to ensure secure gas supplies…

… We will introduce measures in the Energy Security and Green Economy Bill to encourage not only more gas storage, but greater gas import capacity to help ensure that our market will deliver gas when it is needed”

The Saltfleetby project will be designed to take natural gas from the high pressure gas grid at Theddlethorpe when demand for gas is low. It will transport the gas via a pipeline to a new gas storage facility at Grayfleet East.

There the gas will be compressed and injected into the partially depleted reservoir – which is approximately 2.3 kilometres below ground level. Subsequently, the gas will be withdrawn at times of high gas demand and returned via pipeline to the gas transmission grid.

Source: Utility Week

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Commercial gas supplier CNG is delighted to be nominated for a National Customer Service Award –where these awards celebrate the effort and impact of excellent customer service on the customer and business.

CNG has been shortlisted in the ‘The Institute of Customer Service Best Customer Service Employer’ category, and is up against firms including British Gas and Premier Energy. But after recently being awarded the Ackrill Media Awards’ Best Medium Sized Business’ the team is relishing the chance to compete at national level for recognition of its outstanding customer service.

Each of the categories has its own criteria, but all entrants are judged on their commitment to the high standards of customer care within their teams and organisation. CNG, based in Harrogate, North Yorkshire, is now preparing a presentation for the judging process and is looking forward to the prestigious awards ceremony on December 7, 2010 at the Grosvenor House Hotel, London.

Sources: cngltd (news) / callcentre.co.uk

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According to UK company Gulfsands Petroleum Plc – an independent oil and gas exploration and production company with operations in the Middle East and the US – its partner, ADX Energy Ltd, has suspended drilling at the Lambouka-1 well – offshore Tunisia, following the discovery of natural gas, reports Bloomberg.

In an issued statement, London-based Gulfsands said:

As a result of down-hole problems, no fluid samples or gas flow could be established…

… Suspension will allow re-entry at a later date and provide the best opportunity to minimise rig time and maximise reservoir information”

The well was drilled by ADX, operator of the Kerkouane offshore license, in which Gulfsands has agreed to buy a 30% stake. The explorer also owns two adjacent permits southwest of Sicily and northeast of Tunisia covering a total area of 4,500 square kilometers (1,737 square miles).

Source: Bloomberg.com

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Gazprom, the world’s largest natural gas producer, has reported record first-quarter profits as a result of the unusually harsh winter which boosted demand in Europe and Russia, reports Energy Daily. The Russian state-owned energy company has confirmed that its net income increased to $10.6 billion during the first quarter of 2010 – which is over three times more than for the same period last year.

The energy company explained that the extraordinary low temperatures across Europe and Russia increased gas sales by over 20% to 162.2 billion cubic meters in the first quarter. As a result, gains of the ruble against the dollar also improved.

Gazprom struggled during the first quarter of 2009 as the economic crisis established a hold. But, the latest quarterly figures show a significant improvement for Gazprom – even though profits fell in Europe – its key export market – for the same period.

Gas prices are linked to those for crude in Europe, with the recession making oil cheaper. As a result Gazprom increased its prices to increase profits and reduce gas waste – this boosted domestic revenue by 47% but at the same time led to a 22% drop in Europe.

However, further financial pressure looms as Moscow prepares to raise oil and gas taxes in an attempt to reduce federal deficit – for the first time in a number of years.

Meanwhile, Gazprom recently increased its European export prices by 30% in a bid to improve numbers in Europe – angering energy experts who are calling for the uncoupling of oil and gas prices.

Source: Energy Daily

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Gas pipeline owner, Northern Gas Networks, announces £440,000 upgrade to gas network in Durham City. United Utilities and Balfour Beatty – on behalf of Northern Gas Networks, will start work on September 13, 2010 to enable homes and businesses in the historic town to benefit from an improved gas service.

Approximately 2.9 km of old metal mains are due to be replaced by more modern plastic pipe which has been designed to provide safe and reliable gas supplies for decades to come. The Durham City project is expected to be complete by the end of October.

Every effort has been taken to minimise disruption to local people, as such the gas mains renewal programme has been strategically planned to coincide with a £5.25 million project run by Durham City Vision and contractor Carillion to repave the city’s streets and pathways. By combining the work, it is anticipated the total amount of time which Durham’s streets have to be excavated will be vastly reduced.

The gas work is due to be carried out in two phases; phase one is work in Saddler Street up to the junction of Owengate between 13th and 19th September; phase two involves excavation from Owengate to Bow Lane.

Northern Gas Networks apologises for any inconvenience caused to residents whilst these essential gas works are carried out. The company said a customer liaison officer will regularly visit site to discuss the improvements with residents and traders. Northern Gas Networks’ Director Chris Gorman confirmed that everything possible would be done to keep inconvenience to an absolute minimum.

Source: northerngasnetworks.com (latest news)

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Pennsylvanian based, Airgas Inc., has signed a Strategic Agreement with UK based BAE Systems, a defence and aerospace company, for the supply of bulk and packaged industrial gas, welding hard goods, personal protective equipment (PPE) products and other related items, reports Gasworld.

The supply agreement between the two companies will ensure that all BAE Systems’ manufacturing locations across the US are fully equipped.

Furthermore, this five-year agreement constitutes part of the Airgas Strategic Accounts program which has been designed to serve multi-location customers.

Commenting on the agreement, which further strengthens their corporate relationship, Pat Visintainer, Airgas Senior Vice President of Corporate Accounts, said:

“Airgas has been providing packaged gases, welding hard goods and PPE safety products to various BAE Systems locations for a number of years”

Annie Van-Vuong, Strategic Commodity Manager at BAE Systems Inc., further remarked:

“This agreement strengthens our partnership by extending Airgas supply to all three principal operating groups – Electronic Intelligence and Support, Land & Armaments, Programs and Support – with the industrial gases, welding hard goods and PPE safety products they require… Airgas has the national footprint, comprehensive offering, and supply chain management expertise that will help BAE’S Systems divisions optimise performance”

Source: Gasworld (News)

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Energy supplier RWE npower has confirmed that the first of its Staythorpe Power Station’s four units has been made available for commercial operation. Commissioning of the unit at the combined cycle gas turbine (CCGT) power station was finished late last Friday and handed over to the power station’s operational team.

Commissioning of the second unit will be complete later this month, which will enable the plant to generate up to 860MW (Megawatts). Full commercial operation of all four of the station’s units is expected by the end of the year.

RWE npower’s Chief Technical Officer, Kevin McCullough, stated:

“I’m delighted that the first step towards the full commercial operation of Staythorpe Power Station has been achieved…

… This new, gas-fired power station complements our other low carbon technology initiatives, such as our new nuclear build programme and renewables projects and will play an important part in achieving the diverse mix of energy generation needed to reduce CO2 while maintaining affordable and secure supplies”

In an attempt to help meet an anticipated 15-25GW (gigawatts) of new generating capacity that will be needed in the UK by 2020, RWE npower is undertaking a large scale building programme of new generation infrastructure as well as investing billions of pounds over the next ten years in new-build.

Source: npower (Press Release)

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Utility company National Grid is inviting residents of Ruislip, Middlesex to an information event being held in the town next week so they can learn more about the major gas mains upgrade that is due to commence Monday September 13, 2010 for seven weeks. This project forms part of National Grid’s nationwide mains replacement programme to replace all metallic gas mains within 30 metres of buildings.

An information bus with all the details and information relating to the project will be located outside 168 Field End Road in Eastcote from Monday September 6, to Wednesday September 8, 2010. The work is being carried out by the North London Gas Alliance – which is a partnership between National Grid and Skanska.

Whilst this essential gas mains work is carried out, Elm Avenue and Park Way in Ruislip will be closed to westbound traffic between Field End Road and Windmill Hill. Traffic will be diverted along Field End Road, High Road Eastcote, Eastcote Road and Windmill Hill accordingly.

This latest work forms part of an essential project to replace more than 18km of iron gas mains with new hard-wearing plastic pipes across Ealing, Harrow and Hillingdon. The scheme has been carefully planned in cooperation with the London Borough of Hillingdon, police, local transport organisations and other agencies to ensure work is carried out with minimal disruption.

Discussing the project, National Grid Construction Operations Engineer Kevin Blundell stated:

“The new pipes will last for 80 years and will help ensure the community continues to enjoy safe and reliable gas supplies for decades to come. We apologise for any inconvenience this essential work may cause but we will be doing all we can to minimise disruption.”

To find out more visit the information bus or call National Grid’s advice line on 0800 096 5678.

Source: National Grid (Press Release)

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A graduate Trainee at gas pipeline operator, Scotland Gas Networks (SGN), has won first prize at the Scottish Branch of the Pipeline Industries Guild Young Person’s Paper competition. Jamie McAinsh was awarded the Carron trophy and also received £250 at the Presentation Competition held recently in Aberdeen.

In his paper, entitled ‘Biomethane – Gas of the Future’, Mr. McAinsh outlined the exciting and innovative work which is currently being carried out by SNG within the ‘green gas’ sector. Also known as ‘poo power’ – biomethane can be made from human waste and manure which is processed and then transported through existing mains networks. This method significantly reduces the amount of waste sent to landfill as well as the huge reliance on North Sea gas.

SGN is preparing to open its first biomethane project at Didcot in Oxfordshire later this month in collaboration with Thames Water and Centrica Plc. It is expected the biomethane will initially provide energy to approximately 200 local homes and business premises.

Mr. McAinish joined SGN as a Graduate Trainee in October 2008, embarking on a structured two-year training programme, offering in-depth understanding of the company and the gas industry. He came up against strong competition for the award including representatives of Acergy, Morgan Oil and Technip. However, it was his lively and informative presentation that was regarded as being highly educational, raising awareness on a subject that has an important future in the gas industry.

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Source: SNG (Press Release)