Planning permission has been given for part of Centrica's Baird gas storage facility. The 81 billion cubic feet (bcf) project will be the second biggest in the UK after Rough. Such sites are seen as a major part of the UK's future fuel mix, raising system security. However, Centrica has recently put another UK scheme on hold, citing issues with the regulator. Such problems and cost issues may see other projects stall going forward.
Centrica is developing the depleted gas field off the Norfolk coast with Perenco UK. The Baird Gas Storage Project is a joint venture between the two. It has now received planning approval from the north Norfolk District Council for the onshore element of the scheme. Additional permission is still required from the Secretary of State for Energy and Climate Change for the offshore element. However, the final investment decision has yet to be made, meaning it is in no way certain that it will be completed.
Earlier this year, Centric moved the decision back a year and put the development of the Caythorpe storage facility on hold. This was due to higher regulatory risk after Ofgem commented it may review Third-Party Access exemptions for the site.
Commenting on the latest planning permission, Simon Wills, Managing Director of Centric Storage, said, "This is another important milestone...Baird is an exciting project that could provide a major contribution to UK security of supply." He added, "As the UK becomes increasingly reliant on imported gas supplies, more storage facilities will be required. Baird could play an important role in this, but we need to ensure that projects are economically viable in the long term. This planning approval is another successful step on the road to a final investment decision in 2011."