LONDON, UK: Angus Energy plc, a UK-based oil and gas producer, has signed a Memorandum of Understanding with a subsidiary of Trafigura Group Pte Ltd., a global commodity trading company, to explore the possibility of developing an underground gas storage facility in the Saltfleetby Gas Field in Lincolnshire.

The Saltfleetby Gas Field is the UK’s largest onshore gas field and its largest potential subsurface porous rock storage reservoir. It could store natural gas, CO2, or hydrogen, depending on the technical and commercial feasibility.

The Memorandum outlines the terms and model of co-operation between Angus and Trafigura, who intend to review the feasibility of storage at Saltfleetby and agree on the commercial terms and schedule for a future storage project. Trafigura would act as the initial customer or offtaker of a portion of the stored gas, subject to quality specifications.

The parties aim to agree and set out specific milestones for the project within 12 months of the date of the Memorandum.

The co-operation between Angus and Trafigura is part of a wider effort to leverage their complementary capabilities and collaborate on renewable energy generation and clean energy technologies.

Richard Herbert, CEO, comments:  “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 United Kingdom’s transition from carbon heavy fuels to energy sources with a lower environmental impact, while making attractive commercial returns for shareholders.”