Canatxx seeks partners for gas storage deals

United Kingdom's Canatxx Gas Storage is seeking indications of interest from parties to enter into long-term gas storage agreements of up to a total of 20 billion cubic feet (bcf).

It is offering withdrawal from storage with firm entry rights into the National Transmission System.

Bidders are also invited to express interest in an option to purchase equity and/or terminal usage rights from Canatxx LNG Limited, which owns the LNG re-gasification project at Anglesey, Wales. Canatxx received its planning permission in March 2008 and this is one of the only permitted LNG projects in Europe.

Canatxx Gas Storage and Canatxx LNG Limited have announced that they have retained BNP Paribas Corporate Finance to advise in seeking strategic investors to take a stake of up to 50 per cent in the company.

The planned gas storage facility is located in the county of Lancashire on the Irish Sea coast. The site is planned to be the largest onshore natural gas storage facility in the UK, with initial working storage capacity of 12 billion cubic feet (bcf) in 2013, increasing to 42 bcf by 2018.

William Reynolds, Chief Financial Officer of Canatxx, said: "The UK is the world's seventh-largest gas market, but the volume and flexibility of domestic gas production have been in decline since 2000 and this trend is expected to continue, increasing the country's net import requirements over the coming years."

"Our planned facilities will add significantly to the UK's existing flexible gas storage and increase the capacity to add gas into the transmission system."

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