EDF Energy has agreed a deal with British Salt Ltd to acquire a site to build a new fast cycle underground gas storage facility in Cheshire - it will be adjacent to EDF Trading's existing facility at Hole House Farm, Middlewich.

The deal, which is set to provide a major boost to the local construction and engineering sector once work gets underway, provides further stability for British Salt's production plant, which employs 125 people.

The storage facility will help secure the energy supply of the UK in the face of the continued decline of domestic gas production from the North Sea and gas being derived from many sources across Europe, Russia and North Africa.

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It is composed of 10 pre-existing cavities formed in the rock salt deposits some 200m beneath the ground. The cavities are currently full of brine which will be displaced by gas and used by British Salt as feedstock for their salt production process.

When in full operation in 2016, EDF Energy's fast cycle gas storage facility will have a total storage capacity of 36 million therms.

Martin Lawrence, EDF Energy's Managing Director Energy Sourcing and Customer Supply, said: "This transaction forms part of our wider commitment to the UK energy sector and will help balance our gas supply position against customer need.

"We have been working for some time with British Salt to bring this transaction to a conclusion and we are pleased this project is being taken forward by EDF Energy with British Salt, an organisation that has been at the heart of the community in Cheshire for many years."

(CD/JM)