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    Angus Targets First Gas at UK Field by Year-end

Summary

The company has not yet announced an offtake deal for Saltfleetby's gas.

by: Joseph Murphy

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Angus Targets First Gas at UK Field by Year-end

London-listed Angus Energy aims to resume gas flows from the onshore Saltfleetby field in Lincolnshire by the end of the year, it said on June 23.

Saltfleetby first entered production in 1999 and was formerly the UK's largest onshore gas field. But it was closed in 2017 after most of its gas had been extracted. Plans were put forward to use the field's reservoirs for storage, but the project was later judged uneconomical.

Angus, which acquired a 51% stake in the field last year from Wingas, estimates that it still contains up to 18bn ft3 of gas that can be recovered. Planning applications for processing facilities and a short pipeline extension to the national grid have been submitted to Lincolnshire city council, the company said. 

"Our aim is to complete tendering before mid-June with a view to pipeline connection in Q3 and installation in Q4 with an eye to first gas near the end of the year," Angus said. "There are many moving parts to the programme and our timeline will be at the mercy of the slowest of them."

"Notwithstanding that and the present Covid-19 situation progress made to date gives us some confidence that the timetable will not be greatly altered," it said.

Angus said on May 1 it expected to finalise an offtake agreement for Saltfleetby's gas during May, but such a deal has not been announced. The company did not comment on offtake arrangements in its latest statement.

Saltfleetby will flow 17-19mn therms (1.66-1.87bn ft3) of gas in its first year, Angus estimates.