Press pack
Inauguration of the Stublach
Underground Natural Gas Storage Facility
14th November 2014
A major industrial project for GDF SUEZ in the UK
Summary index
I
- Stublach underground natural gas storage
A key asset for UK energy security of gas supply
2
II
- Stublach underground natural gas storage
New highly flexible salt cavern gas storage for the UK
3
III
- Underground natural gas storage
Part of the mix ensuring continuity of energy supply
4
IV - Storing gas in salt caverns
What does it look like? What is it for?
5
V
6
- Storengy in the UK
Safety and responsibility at the heart of all we do
VI - Storengy
7
A world leader in underground gas storage
A renowned expert in underground energy
VII - GDF SUEZ Infrastructures
Europe’s leader in natural gas infrastructure
VIII - GDF SUEZ in the UK
9
10
A leading player in the UK energy sector
Electricity Generation
Retail and Trading
A major player in the B2B energy services market
GDF SUEZ Exploration & Production UK Ltd
Contacts
15
-1-
I.
Stublach underground natural gas storage
A key asset for the UK security of gas supply
Stublach: a key gas installation for the UK
• The Stublach underground natural gas storage
facility is located near Northwich in Cheshire on a
1,040 acre site.
• When fully developed, Stublach will store up to
400 million cubic metres (mcm) of gas in 20
purpose built salt caverns over 500 metres below
ground, providing close to 10% of the current UK
underground gas storage capacity. 2 caverns
have been commissioned so far and 3 more will
be available for storage in 2015/16, bringing the
total gas storage volume to circa 100 mcm.
• When fully operational, Stublach will have the
capability to deliver up to 30 mcm of gas per day
to the market. It will be will be the largest onshore
underground natural gas storage site in the UK.
• As a very fast-cycle storage, it can offer rapid
products to the market and is able to meet
seasonal needs as well as peak demand within
the day. Commercial operations have now
commenced.
• Stublach benefits from an exemption order
granted by Ofgem, allowing various ways to
access the market, notably through flexible
products offered to third parties.
Source: GSE
Stublach is a highly valuable facility to ensure
flexibility in the gas chain and it will contribute to
enhancing UK energy security of supply.
Stublach: a UK site supported by the
expertise and experience of an
international utility company
Storengy is a 100% subsidiary of GDF SUEZ.
• Storengy is working closely with land owner
INEOS to develop the caverns. INEOS supplies
water and off-takes the brine for use in the local
chemical industry.
Facilities on Stublach site
-2-
II.
Stublach underground natural gas storage
A highly flexible salt cavern storage for the UK
With a current 6% gas storage ratio (storage capacity/gas consumption), the UK is well below the EU
average of 22%. As the UK becomes more dependent on gas imports and the likelihood of an
increasingly flexible demand, new storage sites like Stublach will play an important role to meet the gas
market needs.
As one of the most flexible facilities in the UK, Stublach will offer an efficient way to mitigate risks of
reduced supply from other sources and will be able to respond to market demands.
Stublach: key characteristics




A very fast-cycle salt cavern storage with high injection and withdrawal rates: up to 30 mcm/day
A significant working gas volume reaching up to 400 mcm in 20 caverns
Flexible products and services adapted to our customers’ needs
Wide range of fast-cycling and marked-to-market products, allowing users to inject or withdraw
their gas many times during the year.
Space
(bcm)
Delivery
(mcm/d)
Existing
4.6
154
Under
Construction
0.5
45
Total
5.1
199
Total UK
UK UNDERGROUND
GAS STORAGES
(existing and under
construction)
Hatfield Moore
Hornsea
Space: 0.2 bcm
Delivery: 22mcm/d
Holford
Space: 0.4 bcm by 2020
Delivery: 30mcm/d by
2020
Stublach
Space: 0.1 bcm
Delivery: 15 mcm/d
Hill Top Farm
Space: 0.05 bcm
Delivery: 11 mcm/d
Albrough
Rough
Humbly
Grove
Hole House
Farm
Space: 0.07 bcm
Delivery: 2 mcm/d
Space: 0.3 bcm
Delivery: 18
mcm/d
Space: 0.3 bcm
Delivery: 40
mcm/d
Space: 3.3 bcm
Delivery: 41
mcm/d
Space: 0.3 bcm
Delivery: 7 mcm/d
Source: Gas 10 years statement 2013 + internal
Depleted field
Salt Cavern
Fast Salt Cavern
-3-
Fast Salt Cavern Projects
III. Underground natural gas storage
Indispensable during winters in the UK
Gas storage plays a key role as a flexible and responsive tool to changing market conditions.
Fast-cycle storage is needed in order to:



Respond to intermittency in supply (e.g. wind power) or spikes in demand
Mitigate price risks
Help avoid network congestion.
Recent winters in the UK outlined the role of storage to enhance security of
supply...
% Gas Stock Level
Cold snap the 2 first weeks of
February 2012
 In the UK, storage represented about 20%
of total supply but additional withdrawals
accounted for more than 70% of total
supply-side growth.
 On 7th February, spot prices breached
100 pence per therm (with day-ahead at
98.75 p/th, which compares to 52.6p/th as of
3rd November 2014) due to reduced Russian
supply towards Europe.
50% of European gas supply came from
storage.
01/10
01/11
March 2013, coldest in 50 years
01/01
01/02 01/03
01/04
Winter
12-13
100.00
p/th
relied heavily on imports from Norway and
the continent, especially via the
Interconnector UK (IUK) (up to 20% of
supplies) .
 An outage on the IUK on 22nd March sent
the day-ahead above 100 p/th for the first
time since 2006.
 Storage level fell under 5% in early April.
01/12
NBP Day-ahead prices
120.00
 With reduced LNG deliveries, the UK
Winter
12-13
Winter
11-12
Winter
10-11
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Winter
11-12
80.00
60.00
Winter
10-11
40.00
20.00
0.00
01/10
01/11
01/12
01/01
01/02
01/03
01/04
...and current market dynamics highlights the interest of gas storage.
High Summer-Winter spread 2014
The summer/winter spread across Europe has widened significantly. A mild winter in 2013/14
resulted in abundant gas and a weak gas demand drove summer gas prices significantly down,
whereas the current geopolitical tensions between Russia and Ukraine are supporting winter 2014
prices. As a consequence, gas storage was a particularly relevant way to mitigate the effect of these
price fluctuations.
-4-
IV. Storing gas in salt caverns
What does it look like? What is it for?
There are three major types of underground gas storage: salt caverns, aquifers, depleted oil/gas fields.
Salt caverns represent around 7% of underground gas storage in the world.
The advantage of Salt Caverns is that they provide the fastest deliverability (highest gas injection and
withdrawal rates).
Salt Caverns offer excellent flexibility:


Both for long term seasonal and short term peak gas demand
Together with rapid access to gas for electricity markets (Combined Cycle Gas Turbine Electricity
Generation)
Developing an underground gas storage facility involves the
following steps:
 First the cavern is created, by drilling into the salt strata, then
injecting water to dissolve the salt. When fully created the
cavern is tested ahead of injecting the gas to displace the
brine.
 Secondly, the gas compression facility is set up, by
constructing the gas and electricity infrastructure connections,
installing the compression, dehydration (gas drying) and gas
metering equipment.
 gas compression
 operating well
 salt cavern
 rock salt
Cemented
casing
Water under
pressure
Roofprotecting
fluid
Brine
-5-
V.
Storengy in the UK
Safety and responsibility at the heart of all we do
Safety first
• For Storengy, safety is key. In 2013 and 2014,
Storengy UK won a RoSPA* Gold Award. To win a
Gold Award, Storengy had to demonstrate a well
developed health and safety management system with
a culture of outstanding control of risk and a very low
level of injury.
• Over the last 7 years at Stublach nearly 3,000,000
man-hours have been worked constructing the facility.
Through out the construction we have delivered a
world class safety performance.
Stublach: a sustainable and locally integrated development
• Brine produced through the creation of the caverns is used in the local chemical industry.
• During the construction work at Stublach, Storengy has taken great care to protect the habitats of
endangered species. Great Crested Newts, the most heavily protected species in the UK, live on the
agricultural land of the site. With the advice of a local ecologist, Storengy UK has taken special
protection measures to secure the movements of the newts between ponds. An enclosure with
specially designed plastic fences was set up ahead of the works to keep them safe during the works.
• Storengy UK aims to benefit the local community and to have a long-term positive effect in the region.
• Storengy uses the products and services of numerous local companies.
• Storengy has set up a Local Liaison Committee to meet regularly with the local Councillors and has
created a Community Development Fund supporting over 30 local projects. These projects have
included a range of improvements to village halls, with its latest project providing equipment for a new
sensory room in a local primary school.
Stublach gas plant
* RoSPA: Royal Society for the Prevention of Accidents
-6-
VI. Storengy
A world leader in underground gas storage
Storengy is a subsidiary of GDF SUEZ, part of its Infrastructures business line. Its business is based on
recognised expertise in the design and operation of complex industrial sites and rare expertise in
underground modelling.
Storengy is one of the few operators in the world to combine skills as varied as market analysis,
subsurface sciences, drilling and completion techniques, underground reservoir engineering, operation of
surface industrial facilities and industrial safety. Relying on this wide range of expertise, Storengy has
become one of the world leaders in underground natural gas storage.
With nearly 60 years experience and a total worldwide storage capacity of 12.5 billion cubic metres (bcm),
Storengy designs, develops and operates all types of storage facilities. It provides its customers with
innovative products through its experience in offering sales & marketing services in various markets and
their relevant regulatory environments.
Storengy develops and operates underground natural gas storage sites in France, Germany and the
United Kingdom. Storengy, an internationally recognised partner, is also represented in Canada and
China. Additionally, the company provides its industrial know-how and expertise in the field of
underground operations to numerous partners around the world for a variety of projects.
22 storage sites in Europe
12.5 bcm
of total
storage
capacity
~1,000
employees
~ 40 clients
Key figures





1st storage operator in Europe
3rd largest storage operator in the world
22 storage sites
1,000 employees
12.5 bcm of total storage capacity
-7-
VI. Storengy
A renowned expert in underground energy
Storengy is one of the few companies that combine all the expertise necessary for the analysis,
development and marketing, as well as the operation, of storage sites for all four technologies available :
salt caverns, aquifers, depleted oil/gas fields and Lined Rock Caverns (LRC).
Link to the website
Geothermal energy
Storengy leverages its multi-disciplinary teams and cutting-edge
expertise in hydrology, geology, reservoir modelling and well
drilling to position itself as a key player within the GDF SUEZ
group for the development of geothermal energy.
Storengy is involved in all types of geothermal projects, in both
heat production and electricity generation.
The company can provide expertise:
 Upstream to assess field potential and develop permit
applications
 During construction to engineer and supervise drilling
operations
 During operation to monitor and optimize production and
asset maintenance (for well equipment, in particular).
-8-
VII. GDF SUEZ Infrastructures
Europe’s leader in natural gas infrastructures
Storengy is part of GDF SUEZ Infrastructures business line.
LNG terminals, storage sites, transportation and distribution networks: GDF SUEZ’s Infrastructures
business line manages the biggest networks and capacities in Europe. It employs 17,660 people and in
2013 its turnover was €6.8 billion.
GDF SUEZ, through its independent subsidiaries, is the leader in natural gas infrastructures in Europe:
 No. 1 in Europe for natural gas storage capacity
 No. 1 in Europe for natural gas distribution network
 No. 2 in Europe for natural gas transmission network
 No. 2 in Europe for regasification capacity in LNG terminals
The Group is developing its infrastructures and projects to invest 1.5 to 2 billion euros every year up to
2016.
Natural gas transport: From the place where natural gas is produced, to distribution over networks
and grids, natural gas is routed over transport infrastructures. In line with current regulations, GRTgaz
operates, maintains and adapts a transport network of more than 32,000 km in France.
LNG terminals: when the gas production site is isolated or
too far from the place of consumption to allow gas pipeline transport, natural gas is transported by
LNG tankers (Liquefied Natural Gas). Elengy, a GDF SUEZ subsidiary operates three LNG terminals in
France.
Natural gas storage: to secure supply and provide the necessary flexibility, GDF SUEZ via Storengy,
a major player in gas storage, operates 22 underground gas storage sites in France, Germany and the
UK. Renowned for its unique expertise, the Group seeks to deploy storage projects in the fast growing
markets outside of Europe (China, India) and to capitalize on its subsurface know-how in new areas of
activities such as geothermal energy.
Natural Gas distribution: to route natural gas up to the point where it will be used, the distribution
grid, open to all suppliers, is the last link in the gas supply chain. GrDF operates close to 200,000 km of
the gas distribution grid in France.
-9-
VIII. GDF SUEZ in the United Kingdom
A leading player in the UK energy sector
In the United Kingdom, GDF SUEZ is playing a leading
role in securing energy supplies, building a low-carbon
economy and creating a more energy and environmentally
efficient business community.
GDF SUEZ has been operating in the UK for more than
30 years, delivering market-leading expertise in energy
exploration, generation, storage and supply, energyefficiency services and engineering services.
In 1963, GDF SUEZ started the commercial operations of
its first Power Station at Ffestiniog. This project was the
UK's first major pumped storage power facility.
Dinorwig power station
All 5 GDF SUEZ business lines are present in the UK
In 2013, the Group generated over €4.6 billion revenues. With around 19,000 employees in the
country,
GDF SUEZ stands among the top 8 foreign employers in the UK. GDF SUEZ is active in 19 different
companies across the energy chain value in the UK through the following businesses:
 Exploration & Production
 Gas storage
 Power generation
 Nuclear
 Renewable energy
 Retail business
 Service business
-1011
VIII. GDF SUEZ in the UK
Electricity Generation
GDF SUEZ Energy UK-Turkey operates a diverse
portfolio of assets, including gas, coal, pumped storage
and renewable generation, as well as a retail business,
gas distribution and a trading function in the country.
GDF SUEZ Energy UK-Turkey employs around
approximately 800 people in the UK (and more than 300
in Turkey).
Generation business
One of major electricity generators with a merchant
generation fleet of thirteen operational assets with a
total capacity of:
 8.2 GW gross capacity in operation (1)
 4.9 GW net capacity in operation (1)
Represents approx. 6% of the UK installed generation
capacity.
Five of the power plants and the trading operations
are 75% owned by GDF SUEZ and 25% by Mitsui.
In March 2014, GDF SUEZ acquired West Coast
Energy company, a renewable energy developer, to
significantly bolster its pipeline of development
opportunities.
1.Barlockhart 8 MW
2.Blantyre 12 MW
3.Carsington 8 MW
4.Crimp 2 MW
5.Deeside 515 MW
6.Eggborough 1,960 MW
7. First Hydro 2,088 MW
8. Flimby6 MW
9. Indian Queens 129 MW
10. Rugeley 1,026 MW
11. Saltend 1,197 MW
12. Scotia 20 MW
13. Sober 12 MW
Asset portfolio
(1) As
Pumped storage plants at
Dinorwig and Ffestiniog in the
Snowdonia region of Wales (First
Hydro 2,088 MW).
A 70 MW wind generation
portfolio is being actively
developed by the West Coast
Energy affiliate.
Gas-fired assets: Deeside facility
(515 MW) in Flintshire and
Saltend power station (a
combined cycle cogeneration
plant, CCG) in Hull with a longterm offtake contract to provide
steam to local industrial
customers.
Coal-fired power stations:
Rugeley (1,026 MW)
Indian Queens (129 MW)
and minority interest in
Eggborough (1,960 MW).
at 30 June 2014
-1112
VIII. GDF SUEZ in the UK
Retail and Trading
Retail
Operating in the UK supply market since 1999, GDF SUEZ Energy UK is a retail
business, supplying electricity and gas to industrial and commercial customers.




665 million therms gas and 10.4 TWh power portfolio
5,500 business premises with power
5,500 business premises with gas
One of the top seven UK suppliers of power and gas to business customers
In addition to supplying energy we are a market leader in demand-side services
and a growing provider of export contracts and Power Purchase Agreements
(PPAs).
GDF SUEZ Energy UK also have a 30% ownership interest in Opus Energy, an
electricity and gas supplier to around 150,000 small and medium sized
business premises, which was established in 2002.
Trading
GDF SUEZ Energy UK-Turkey has a trading business which trades UK power, UK gas,
EU carbon and coal, to manage the commodity price exposures associated with its
generation assets and retail market position.
 Trading via IPM Energy Trading Limited
 Manages the commodity price exposures associated with the generation and retail
activities
Trading operations
-12-
VIII. GDF SUEZ in the UK
A major player in the B2B energy services market
Under its brand Cofely, GDF SUEZ Energy Services is a global player in energy
efficiency, multi-technical services and outsourcing for cities, buildings, industry and
infrastructures. Our experts design, develop and manage tailored smart and sustainable
solutions for our customers’ benefit.
Key figures
 £1 billion revenue in 2013
 15,200 employees
Asset overview
 £200 million investment in UK energy infrastructure (energy centres & district
energy networks)
 Management of 2 GW of thermal generation
 14,000 sites managed in UK
 23.6 million m2 of space managed
Cofely UK: technical Services at
Victoria & Albert Museum,
London
Cofely UK: FM and energy services at Queen
Elizabeth Olympic Park
Cofely UK: energy Services at BP’s Sullom Voe
terminal, Shetland Islands
Cofely Fabricom GDF SUEZ is an organisation providing high value consultancy, engineering,
management and construction expertise and capability to the oil gas, power, chemical and
renewables industries. We are one of the leading multi-disciplined engineering, project management
and construction organisations in the UK.
Cofely Fabricom: offshore high voltage
substation (OHVS) for offshore
windfarm
Key figures
 £110 million revenue in 2013
 880 employees
-13-
VIII. GDF SUEZ in the UK
GDF SUEZ Exploration & Production UK Ltd
GDF SUEZ E&P UK Ltd is an increasingly significant player in oil and
gas exploration and production in the UK Continental Shelf. Since
entering the region in 1997, the company has built up a substantial
portfolio of assets in the Central and Southern North Sea, and West of
Shetland, comprising more than 50 licenses, 20 of which as operator*.
The company entered the UK onshore E&P activity in October 2013 when
it agreed to acquire a 25% share in 13 UK onshore licences across the
Bowland Shale of Cheshire and the East Midlands.
GDF SUEZ E&P UK is operator of the Cygnus development, the largest
gas discovery in the Southern Gas Basin and the sixth largest field
discovery in the past 25 years in the UKCS in the last 25 years. With
gross 2P (proved and probable) reserves of approximately 18 billion cubic
metres. First gas is targeted for late 2015. Cygnus is located 150
kilometres off the coast of Lincolnshire.
*As awarded by DECC (Department of Energy and Climate Change)
 Key figures






Interest in almost 50 offshore licences, 20 as operator
Entry in 13 onshore licences with unconventional gas potential
Partner in 2 pipeline systems (ETS and CMS)
Over 200 staff in offices in London and Aberdeen
8th largest UK offshore acreage holder
57 Mboe (Millions of barrels of oil equivalent) 2P reserves
Offshore installation of Cygnus
AWHP (Southern North Sea)
Two jackets for the
Alpha complex
Cygnus Alpha
Wellhead Platform
-14-
Cygnus Alpha
Wellhead Platform
Contact:
Storengy: storengy-communication-externe@storengy.com
For more information : www.storengy.com
-15-
16