Irish energy tycoon Tony O’Reilly Jr plans to build a new gas storage site in the Irish Sea, boosting the UK’s capacity by over 50%. The £830m megaproject aims to address national security risks and grid stability against renewable intermittency and gas price fluctuations.

The UK relies on gas for 29% of its energy, down from 38% in 2022. Dcarbonx proposes a North Sea gas storage facility capable of storing 1.4bn cubic meters to meet six days of average demand. The UK has the lowest gas storage capacity in the G7, with only 12 days worth.

Dcarbonx aims to make the North Sea facility operational within five years, pending regulatory approval and investor interest. The proposal sparks competition with Centrica, operator of the Rough storage site. Centrica expects an operating loss of £50m-£100m without government support.

The Department for Energy Security and Net Zero remains open to discussing gas storage proposals that provide value for taxpayers. The UK’s gas supply diversity reduces reliance on storage compared to other European countries. O’Reilly sees Dcarbonx’s proposal as a distinct economic proposition from Centrica’s Rough site.

Read more at Yahoo Finance: Irish Tycoon Proposes Major UK Gas Storage Expansion