KGSP newsletter

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01

THE KEUPER GAS STORAGE PROJECT CONSULTATION ON PROPOSED UNDERGROUND GAS STORAGE FACILITY Keuper Gas Storage Limited (KGSL) is launching a consultation on plans for additional underground gas storage facilities at the Holford Brinefield, and surrounding area north of Middlewich, Cheshire. This newsletter outlines the consultation that KGSL will be undertaking with the local community and stakeholders to help shape the plans before an application is submitted in early 2015. It follows an earlier stage of consultation that took place in April-June 2014. To find out how you can have your say turn to the back page. The consultation will launch on Thursday 2nd October 2014 and run until Thursday 27th November 2014, with Information Days taking place on:

INFORMATION DAYS Tuesday 14th October, 2-8pm Lostock Community Centre, Stubbs Lane, Lostock Gralam, Northwich, CW9 7PU Thursday 16th October, 2-8pm Byley Village Hall, Moss Lane, Middlewich, CW10 9NG Monday 20th October, 2-8pm Lach Dennis Village Hall, Holmes Chapel Road, Lach Dennis, Northwich, CW9 7SZ Tuesday 21st October, 2-8pm Whitley Village Hall, Village Lane, Higher Whitley, Warrington, WA4 4EJ Thursday 23rd October, 2-8pm Pavilions Club, Sandy Lane, Weston Point, Runcorn, WA7 4EX

Web: www.kgsp.co.uk | Freephone: 0800 1777 250 | Email: info@kgsp.co.uk

Existing brine wellhead at Holford Brinefield

WHY DO WE NEED GAS STORAGE? Gas storage helps to keep lights on and homes warm across the UK by providing a secure and flexible source of energy. Over a quarter of the UK’s electricity is generated from gas and we rely heavily on imports, meaning domestic storage is needed to respond to variable demands – for example, when more gas is needed during colder, darker winter months. Forecasts show that gas will remain an important energy source for heating and electricity for UK homes for many decades.

WHO IS KEUPER GAS STORAGE LIMITED? The Keuper Gas Storage Project is being developed by Keuper Gas Storage Limited, a wholly owned subsidiary of INEOS Enterprises Group Limited. Keuper Gas Storage Limited is the project developer. INEOS Enterprises Limited is the land owner and its Brine & Water Business would be responsible for the solution mining of brine to facilitate this proposed development*. INEOS has strong ties to the region and employs over 1,200 people in Runcorn and Northwich. The Company produces a range of essential chemicals for use by industry in the UK and overseas. *INEOS Enterprises Limited’s Brine and Water Business is due to form part of a new joint venture between INEOS and Solvay, to be known as INOVYN.


02

THE PROJECT The proposed Keuper Gas Storage Project (KGSP) would involve using specially designed underground salt cavities – created through solution mining – to store natural gas. INEOS Enterprises has been solution mining the Holford Brinefield to produce brine for over 80 years. Once the brine is mined, the specially designed cavity left behind can then be used to store natural gas. Natural gas has been stored safely in cavities in the Holford Brinefield since the 1980s. Over 200 cavities have already been developed at the site for brine production, 11 of which are currently in use for gas storage with a further 18 in development.

WHAT IS BRINE USED FOR? Brine is a concentrated salt solution that is used to make chlorine (which makes our drinking water safe) and everyday essentials such as washing powder, toothpaste and table salt.

THE MAIN GAS STORAGE SITE The KGSP would involve creating up to 19 new cavities at the Holford Brinefield and surrounding area north of Middlewich, Cheshire. Once the brine has been removed from the cavities it is sent to INEOS’ operations at Runcorn, along with other customers in the chemical industry and the new cavity is used to store natural gas. KGSP will link to existing infrastructure in the vicinity of the proposed site to connect to the National Transmission System (NTS). Following feedback from the initial consultation undertaken earlier this year and further design refinements, five of the proposed cavity locations have been amended. These are H508, H509, H510, H511 and H515 (the previous and new locations can be seen on the diagram below). The majority of the cavities and all of the proposed gas infrastructure are on INEOS-owned land. KGSL is currently in discussion with landowners for a number of cavities proposed for land not owned by INEOS. KGSL has also reduced the planning application boundary (the new boundary is shown on page 3).

Proposed cavity location map

Web: www.kgsp.co.uk | Freephone: 0800 1777 250 | Email: info@kgsp.co.uk


03

EXISTING WHITLEY PUMPING STATION TO BE REFURBISHED EXTENSION OF BRINE OUTFALL PIPELINE EXISTING 18” BRINE PIPELINE

EXISTING 18” BRINE PIPELINE

2 NEW TANKS LOSTOCK SATURATORS

HOLFORD BRINEFIELD

KGSP application red line boundary

OTHER AREAS OF PROPOSED DEVELOPMENT Most of the construction activity would take place at the main gas storage site in the Holford Brinefield. However, the application boundary extends northwest to Weston Point in Runcorn and south to Ravenscroft. This is because KGSL is proposing to use and upgrade existing brine and water infrastructure for this Project.

not be used to transport gas – all of the gas storage will take place at the Holford Brinefield.

There are some smaller construction works that will need to be undertaken as part of the Project, which will include: • two new brine tanks on the Lostock Works Site, off Griffiths road, Northwich; • the refurbishment of the existing Whitley Pumping Station in Whitley; and • the extension of an existing brine outfall pipeline located at the main INEOS ChlorVinyls site in Runcorn. The existing brine pipeline (which runs from the Lostock Brine Purification Plant in Northwich to the INEOS ChlorVinyls site in Weston Point, Runcorn) will continue to be used to transport brine to INEOS’ operations. This pipeline will

Web: www.kgsp.co.uk | Freephone: 0800 1777 250 | Email: info@kgsp.co.uk

THE PLANNING PROCESS Because of the importance of the proposed development in helping the UK meet its increasing energy needs, the KGSP is classified as a Nationally Significant Infrastructure Project (NSIP). This means that rather than going through the local authority like most planning applications, the KGSP requires a Development Consent Order (DCO) from the Secretary of State for the Department for Energy and Climate Change (DECC). The Planning Inspectorate (PINS) is the government agency responsible for examining planning applications for NSIPs. Cheshire West & Chester Council, Cheshire East Council and Halton Borough Council will be consulted and are entitled to participate in the planning process.


04

INVESTING IN FURTHER GAS STORAGE IN CHESHIRE INEOS has an ongoing demand for brine to meet the needs of our operations across Cheshire and our other customers in the chemical industry. Even without gas storage, cavities would still be required to provide the brine. This proposed development would make use of the salt cavities once all brine has been extracted.

THE BENEFITS • Providing a flexible and secure supply of energy to help keep the lights on in the UK • Up to 300 construction jobs and 30 operational jobs

Cheshire’s geology also means it is one of the few places in the UK where gas can be safely stored underground and there are already a number of existing gas storage facilities operating in the area. The site is immediately adjacent to two existing underground gas storage facilities, the Holford Gas Storage Facility, operated by E.ON and the Stublach Gas Storage Project, operated by Storengy.

• A significant further investment in Cheshire, which can be delivered without subsidies from Government • Supporting INEOS’ businesses at Runcorn by providing brine, which is essential to ongoing operations • KGSL expects to provide a community benefit fund similar to the funds in place for the other existing gas storage projects at the Holford Brinefield, where £20,000 is made available for local community projects each year of construction

INEOS Enterprises has been mining the Holford Brinefield for generations and has an excellent understanding of the geology in the area. KGSL has also appointed Geostock, one of the leading companies specialising in underground gas storage, who commissioned seismic surveys that have helped us to determine the best locations for the cavities. The facilities have to meet strict safety standards, which are amongst the most stringent in the world.

Cross-section of geology at Holford Brinefield -400

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Existing gas storage cavities

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INEOS Geological model

INEOS Geological model

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Web: www.kgsp.co.uk | Freephone: 0800 1777 250 | Email: info@kgsp.co.uk 72

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05

YOUR FEEDBACK SO FAR KGSL undertook initial consultation on the proposed development with the local community and stakeholders in April-June 2014. An Interim Consultation Report has been published which sets out the feedback received and how KGSL has responded to the comments made. You can view this report on the KGSP website: www.kgsp.co.uk.

IS IT SAFE? Safety is the number one priority for both operators and regulators. INEOS has been solution mining within the Holford Brinefield for generations and has safely created and operated over 200 wells. The area is already home to a number of underground gas storage facilities which are wellmaintained and tightly regulated.

WILL I BE ABLE TO SEE IT? A Landscape and Visual Impact Assessment (LVIA) is being undertaken as part of the Environmental Impact Assessment (EIA). Initial results suggest that, once the KGSP is operational, there will be no significant visual effects on the surrounding landscape. As a result of consultation earlier this year the location of three cavities has been modified and proposed mitigation measures, such as planting and landscaping, have been incorporated to help minimise the visual impact of the facility for those living closest to it.

HOW WILL THE LOCAL ENVIRONMENT BE PROTECTED? KGSL is developing an Environmental Impact Assessment as part of the application. A Preliminary Environmental Information Report (PEIR) has been published for this stage of consultation, which outlines the surveys undertaken by KGSL to date, some initial findings and proposed mitigation measures. The PEIR can be viewed on the website or at the community locations listed on the back page.

WILL THERE BE AN INCREASE IN TRAFFIC? KGSL proposes to use the existing entrance on King Street to access the development area, preventing construction traffic travelling through Byley. An internal construction one way routing system is being proposed for the main development site to ensure that heavy or large loads are brought to site along the safest routes and with as little impact as possible on the surrounding road network. When the facility is operational, traffic will be minimal.

Web: www.kgsp.co.uk | Freephone: 0800 1777 250 | Email: info@kgsp.co.uk

Image of an existing gas storage wellhead

HOW CAN I REGISTER INTEREST IN JOB OR SUPPLY CHAIN OPPORTUNITIES? KGSL welcomes interest in the jobs and supply chain opportunities associated with the proposed development. You can express your interest in supplying goods or services by contacting KGSP using the contact details on the back page.


06

HAVE YOUR SAY Pre-application consultation is essential in allowing us to understand and minimise the impacts of the proposed development. Full details of how we will undertake our consultation is set out in the Statement of Community Consultation document, available on our website. The formal consultation period will start on Thursday 2nd October 2014 and close on Thursday 27th November 2014. During this period you will be able to find out more about our plans and how you can have your say by visiting one of our Information Days or online at www.kgsp.co.uk. In addition, documents relating to the public consultation will be available to view at the following locations: • Northwich Library, 86 Witton St, CW9 5DR; • Cheshire West & Chester Council, Wyvern House, The Drumber, Winsford, CW7 1AH; • Halton Borough Council, Runcorn Town Hall, Runcorn, Cheshire WA7 5TD; • Halton Direct Link, Concourse Level, Rutland House, Halton Lea, Runcorn, WA7 2ES.

NEXT STEPS Following this period of consultation we will prepare a Consultation Report that will record and respond to all the feedback received in relation to the KGSP. It is anticipated that the application will be submitted in early 2015 and will take around 12 months to determine. If KGSP receives consent for the Project it is anticipated that construction would start in 2017, with solution mining starting from 2018 and gas storage from 2020.

GET IN TOUCH You can get in touch to ask questions or give your feedback on the plans in a number of ways* Call: Freephone 0800 1777 250 (Monday to Friday 9.00am to 5.30pm) Email: info@kgsp.co.uk Write to: Freepost RSKS-SBBE-LHHZ, Keuper Gas Storage Project, c/o PPS Group, 30-32 Charlotte Street, Manchester, M1 4FD Visit: www.kgsp.co.uk *These contact details will put you in touch with PPS Group who are managing the consultation on our behalf.

Web: www.kgsp.co.uk | Freephone: 0800 1777 250 | Email: info@kgsp.co.uk


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