KISTOS has this morning completed the £25million purchase of two major gas storage facilities from EDF Energy.
The firm – led by prolific north Sea dealmaker Andrew Austin – has announced the purchase of Hill Top Farm and Hole House Farm, both onshore storage facilities.
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Following the approval of Kistos by the UK Government under the National Security and Investment Act (NSIA), the transaction marks Kistos’ entry into the gas storage sector.
Hill Top’s working gas capacity is 17.8 million therms, with an ongoing programme to increase this volume to 21.2 million therms in the short term.
Hill Top currently accounts for 3.1% of the UK’s total available onshore gas storage capacity and, due to the fast cycle nature of the facility, can deliver up to 11% of the UK’s flexible daily gas capacity if called upon.
Both facilities have the potential to be repurposed for future energy storage uses, including the storage of compressed air or hydrogen, and concept studies are underway.
Mr Austin said: “We look forward to working with the existing team with a view to maximising the value-accretive opportunities these gas storage facilities present, establishing Kistos’ presence across the energy value chain with a foothold in the midstream market.
Over the longer term, we will also be evaluating our options to further expand operations via other energy storage sources such as compressed air or hydrogen.”
Mr Austin launched Kistos in 2020 after Rockrose Energy – which he led – was bought by Viaro Energy for £248million.
Kistos is aiming to buy and run companies involved in energy production and the transition to a low carbon economy. At launch, Mr Austin said Kistos would have a “rigorous approach” to dealmaking.
