Centrica Storage secures life of Easington gas terminal with £120m Tolmount contract
Centrica Storage Limited (CSL) has been awarded a contract by the Tolmount joint venture and infrastructure partners (Premier Oil, Dana Petroleum and Humber Gathering System Limited), worth at least £120m, to process gas from the Tolmount field in the Southern North Sea. The contract will extend the life of CSL’s gas terminal at Easington, Yorkshire, until at least 2030, creating hundreds of jobs during the construction phase and securing 80 over the lifetime of the contract.
Modifications will be made to the terminal so that it can receive and process the gas from the Tolmount field, which will arrive through a new gas pipeline. CSL will start to process the gas in winter 2020, when the field is scheduled to come on stream. The field is scheduled to produce gas for 10 to 15 years.
A joint venture between Premier Oil and Dana Petroleum, the Tolmount gas field has an estimated 500 billion cubic feet of gas reserves. It could produce up to 300 million cubic feet of gas per day, enough to supply around 2.5 million homes.
Construction at Easington will include upgrades to compression facilities, and improvements to the control room to allow the minimal facilities platform at the Tolmount field to be controlled from Easington.
Greg McKenna, Managing Director of Centrica Storage Limited, said: “This contract is a significant achievement for CSL. The terminal at Easington has a long and successful history of receiving and processing gas from third parties, and this reinforces CSL’s position as a strategic gas processing hub for many years to come.
“We’re pleased to have created several hundred jobs in the region in the short term, and secured the long term future for nearly a hundred more.”