Kistos plc expands into UK gas storage market with acquisition of EDF Energy facilities
In a significant development within the UK’s energy sector, Kistos plc, known for its commitment to low carbon intensity hydrocarbon production, has announced the acquisition of EDF Energy (Gas Storage) Limited from EDF Energy (Thermal Generation) Limited for a total consideration of £25 million. This strategic transaction includes two key gas storage facilities, Hill Top Farm and Hole House Farm, marking a pivotal step for Kistos plc in its acquisition strategy aimed at aligning with the energy transition.
The acquisition is a testament to Kistos plc’s strategic vision of diversifying its business portfolio while supporting the UK’s energy transition. By taking on the operatorship of Hill Top and Hole House, Kistos plc not only strengthens its position in the energy sector but also ventures into the gas storage market, indicating a significant growth potential within a stable marketplace.
Hill Top Farm, currently contributing 3.1% to the UK’s total available onshore gas storage capacity, with a capacity of 17.8 million therms, is set to see an increase to 21.2 million therms. This enhancement underlines the facility’s critical role in providing flexible daily gas capacity, potentially delivering up to 11% of the UK’s needs. Meanwhile, the reactivation and further development of the currently non-operational Hole House Farm could materially increase Kistos’ share in the UK’s onshore gas storage capacity, offering substantial upside potential.
Kistos plc Acquires EDF Energy Gas Storage Facilities for £25 Million in Strategic Energy Transition Move
Both facilities hold promise for repurposing towards future energy storage uses, such as compressed air or hydrogen storage. This forward-looking approach positions Kistos plc at the forefront of the transitional energy space, highlighting the company’s commitment to contributing positively to the UK’s energy supply and security.
Andrew Austin, Executive Chairman of Kistos, expressed enthusiasm over the acquisition, stating, “Our entry into the gas storage market marks another advancement in our growth strategy to expand the business through value-accretive acquisitions. These assets not only complement our upstream UK assets but diversify our presence across the energy value chain.”
The Hill Top and Hole House facilities are situated in Cheshire, UK, and have a history of significant contributions to the gas storage sector. The acquisition includes the freehold of Spring Moss farm, expanding Kistos’ operational footprint. Hill Top’s strategic importance is underscored by its fast cycle ability, which allows for value capture during periods of market volatility.
Under the Sale and Purchase Agreement, Kistos plc will pay £25 million in cash to acquire 100% of the share capital of EDF Energy (Gas Storage) Limited. The transaction is subject to regulatory approvals under the National Security and Investment Act 2021, with Kistos making a voluntary notification to ensure compliance.
Looking ahead, Kistos plc plans to leverage the expertise of the existing team and explore all options to expand operations, reinforcing its role in the UK’s energy landscape and contributing to energy security.