StarEnergy Albury Gas Storage Project
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Overview

Star Energy has told local parish councillors (at a meeting on 23rd June 2011) that it has no immediate plans to progress its long-standing gas storage project at Albury in Surrey. The announcement comes after trial drilling, the results of which have indicated that it is not economically viable at present.

The company is, however, hoping to secure approval in the short term for a low-key project that seeks to harness gas that already exists in the field as the basis for an increasingly important low-carbon commercial vehicle fuel.  Production of Liquefied Natural Gas (LNG) would involve only one lorry calling at the site each day to collect LNG, with control being handled remotely. It would not require any pipelines as would have been needed to progress a gas storage scheme.

A spokesman for the company said: “We are obviously disappointed that we are not currently in a position to pursue a gas storage scheme. While the geological structure at Albury would be suitable for gas storage, the economics of the project are not sufficiently robust to justify the investment at this time.

“It is a project that we could return to in the future if the economics change or if there are technical advances. In the meantime, there is now a growing market for LNG in the UK and it makes good sense to use the valuable resource that is there.”

LNG is simply natural gas that has been super-cooled to minus 162 degrees C. At that temperature, it condenses to become a liquid that occupies 600 times less space than the equivalent gas and makes it economic to transport long distances. It can then be used as a fuel or warmed to bring it back to its gaseous state. 

Star Energy’s interest in LNG at Albury relates to moving it only within the UK for use in its liquid form as a valuable low-carbon alternative to diesel. LNG burns more cleanly and quietly than diesel and emits substantially less pollutants.

The production process is a relatively simple one in which gas is pre-treated and filtered to remove impurities. The cleaned gas is then refrigerated to reduce its temperature and liquefy it. Some gas would be used to generate on-site electricity so that the plant would be self-sufficient. The end product is then pumped to a storage tank from which a tanker would load on a daily basis.

 The company is in the early stages of preparing a planning application and will provide more detail to the Albury Parish Council liaison group in due course. Most of the plant required would be built off-site and delivered by lorry for connection and commissioning.

You can view a copy of Star Energy's presentation to the working group that operates with Albury Parish Council here.

TIMELINE

June 2011

The company told members of Albury Parish Council that it had no immediarte plans to pursue a gas storage project but was now hoping to secuire approval for a low-key Liquefied Natural Gas (LNG) project.

April 2010

Appraisal drilling was successfully completed and experts began a comprehensive assessment of the information obtained.

March 2010

The company received retrospective planning permission for erection of the noise baffle around the drilling rig.

October 2009

To ensure compliance with the noise limits it had been necessary to reduce the speed of the drilling operation at night. The slower speed resulted in slower removal of cuttings from the well with the result that the condition of the uncased portion of the well deteriorated. The company planned to “side track” a new well and commissioned erection of a specialised noise baffle.

May 2009

Site preparation work started at our Albury Park      Wellsite for a temporary appraisal drilling and testing programme that is scheduled to run         through the remainder of 2009.

12 November 2008

A new BBC investigation outlines the need for gas storage. Twenty million UK homes rely on gas for heat, yet Britain has just a quarter of the gas storage capability of Germany.

Click here to listen in full

9 July 2008

Surrey County Council gave its permission for the temporary appraisal drilling programme that is needed to assess the potential for a second phase of gas storage. Initial work on site is likely to start during September.

12 June 2008

During the period of statutory consultation, we have received requests for clarification and / or additional information from the planning authority and statutory consultees. Our responses to these requests have been consolidated within an addendum to the planning application for appraisal drilling. The document is also a responses to the common issues raised by the public consultation and is intended to provide clarification of the application and factual correction of some points raised in representations on the submission to date.

Addendum to planning application (pdf 7MB)     

12 June 2008

A number of the representations made to Surrey County Council on the current planning application for appraisal drilling raised the issue of the need for gas storage at Albury. As a result, we have commissioned a detailed independent report on the national case for gas storage from the Energy Contract Company. The report has been submitted to Surrey County Council as a supporting document to the planning application.

The case for additional gas storage (pdf 1.3MB)

7 May 2008

The Secretary of State at the Department for Business, Enterprise and Regulatory Reform, John Hutton, has given us the go-ahead to move on to a formal application for underground storage under the Gas Act 1965.

This application will relate only to the sub-surface elements of the project. Planning applications for the various surface elements will be determined by Surrey County Council. The community will be fullt consulted at every stage.

Decision letter (pdf)

19 March 2008

We submitted a new planning application to Surrey County Council seeking permission for temporary drilling and appraial at our existing Albury website. The work is needed to assess whether the potential to store gas in the field extends below the known geological structure of what is known as Albury 1. By drilling into the lower strata, we can determine whether an Albury 2 store might be possible in the longer term.

More detail

19 October 2007

We published our detailed response to the public consultation which followed our application for preliminary storage authorisation.

Response to public consultation (PDF 234kb)

24 August 2007

The Department for Business, Enterprise and Regulatory Reform published a leaflet Gas Storage in Your Area - Your Questions Answered, which provides helpful information for communities where gas storage projects are proposed.

Gas Storage In Your Area - Your Questions Answered

8 August 2007

Site selection report published. The report describes the basic geographic factors considered in making siting and routing decisions. This includes the wellsite, the gas pipelines, the gas processing facility and the above ground installation which would connect to the gas grid.

Site selection report (PDF approx 6mb)

25 July 2007

Preliminary submission to the Secretary of State for Business, Enterprise and Regulatory Reform for a storage authorisation under the Gas Act 1965. This is a precursor to the main planning submissions and is focused on the reservoir beneath Albury and adjoining villages.

Preliminary storage authorisation application(PDFapprox 5mb)

Map (PDF approx 4mb)

Public notice

Star Energy

Star Energy is an integrated energy company operating in the UK onshore sector and combining oil, gas and electricity production with a developing gas storage business. The storage arm makes efficient use of depleted natural oil and gas reservoirs to support the Government’s aim of improving the security of energy supplies, thus contributing to economic sustainability for the UK. It is now the second largest onshore operator in the UK. Star Energy has been operating the existing Albury appraisal well site since 1999 without concern from local residents and recreational visitors to the area.

 

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Gas Processing Facility

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PROJECT PLAN
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The production elements and proposed pipeline route. PDF approx 3mb.