Angus Energy has signed a memorandum of understanding (MOU) with a subsidiary of Trafigura Group to explore the development of the UK’s largest potential subsurface porous rock storage reservoir at the Saltfleetby gas field in Lincolnshire.

The collaboration aims to leverage both companies’ capabilities to establish an underground gas storage facility at Saltfleetby, which is the UK’s largest onshore gas field.

The MOU outlines the intention to collaborate on the development of an underground storage facility for natural gas, CO₂ or hydrogen, with Trafigura potentially becoming the initial customer for the stored product.

The agreement sets forth a model for cooperation, where both parties will assess the technical and commercial feasibility of the storage project.

Trafigura is expected to off-take a pre-agreed capacity of the proposed facility, adhering to specific quality specifications for the stored product.

The MOU stipulates that within one year, Trafigura and Angus Energy will establish specific milestones, contingent on the project’s feasibility. These milestones will be critical in progressing towards the establishment of the Saltfleetby gas storage facility.

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Angus Energy CEO Richard Herbert said: “This project builds on the strategic relationship Angus has established with Trafigura with its new loan facility and gas sales from the Saltfleeby field.

“The gas storage project has the potential to facilitate the UK’s transition from carbon-heavy fuels to energy sources with a lower environmental impact, while making attractive commercial returns for shareholders.”

Last year, Trafigura Group offloaded its 24.5% indirect stake in Russia-backed Indian refiner Nayara Energy to Hara Capital Sarl, a wholly owned subsidiary of energy investment group Mareterra Group.