Business
Hill Top Gas Storage Update
Hill Top Gas Storage Update.
About this update from Kistos Holdings Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (UK MAR). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n28 June 2024\n \n\n \nKistos Holdings plc\n \n(\"Kistos\" or the \"Company\")\n \nKistos increases Hill Top working gas capacity by 24%\n \n \nKistos (LSE: KIST), the low carbon intensity energy producer pursuing a strategy to acquire assets with a role in energy transition, is pleased to announce the positive results of a soft cycling relaxation trial completed at its Hill Top Farm gas storage facility. The trial, conducted at the start of May, and overseen by independent geotechnical experts, has confirmed the ability to increase 'working gas' capacity by 24% from 17.8 million to 22 million therms, an increase of 4.2 million therms, which is expected to significantly increase the revenue from both intrinsic seasonal trades and extrinsic trading.\n \nThis conversion of 4.2 million therms from cushion gas to working gas brings the Hill Top facility in line with original design parameters and will allow for the gas to be sold by Kistos at an optimal time in order to maximise intrinsic revenues, whilst our trading partner will aim to capture additional upside from market-driven price volatility.\n \nWhilst this is the first study undertaken since the acquisition of the Hill Top Farm and Hole House Farm facilities from EDF Energy (Gas Storage) Limited earlier this year, the trial represents the fifth phase of a project which was initiated under EDF ownership, and demonstrates the opportunity to realise significant near and medium term upside from the assets.\n \nKistos is now evaluating the economics of recommissioning the Hole House facility. Hole House was developed specifically for gas storage and was operational from 2001 through to 2018 when a period of re-brining the caverns commenced. Three out of the total four caverns are now brine filled, with cushion gas sold to market. Hole House requires approximately one-third as much cushion gas as Hill Top for the same amount of working gas. This study is due to comple...