2 minute read | February.22.2024
Kistos Holdings plc, a low-carbon-intensity hydrocarbon producer, has acquired EDF Energy (Gas Storage) Limited from EDF Energy (Thermal Generation) Limited.
Orrick advised Kistos Holdings plc (LSE: KIST).
Kistos will operate two gas storage facilities that EDF Energy (Thermal Generation) Limited owned – Hill Top Farm and Hole House Farm, Kistos said in a statement.
The total consideration for the transaction was £25 million.
Kistos plc is an independent energy company focused on low-carbon, low-impact development and production opportunities across mature natural gas basins and energy-generation projects.
The transaction is in line with Kistos' acquisition strategy to pursue opportunities and acquire assets with a role in energy transition. Kistos' entry into the gas storage sector provides business diversity to its upstream portfolio within a stable marketplace that offers significant growth potential. Kistos will work alongside a partner to trade gas from the two sites.
Hill Top's gas capacity is 17.8 million therms, with an ongoing programme to increase this working volume to 21.2 million therms in the short term. At current working capacity, Hill Top accounts for 3.1% of the UK's total available onshore gas storage capacity. Due to the fast cycle nature of the facility, Hill Top can deliver up to 11% of the UK's flexible daily gas capacity if called upon. With the addition of the Hole House facility, which is currently non-operational, it is possible to increase its proportion of the UK's total onshore gas storage materially with reactivation and further development.
Both facilities have the potential to be repurposed for future energy storage uses, including the storage of compressed air or hydrogen and concept studies are underway. This would place these assets firmly into the transitional energy space beyond the current key role they play in the UK's supply of gas.
Orrick’s Ed Lukins, Jonathan Rosen and Simon Folley were on the team that advised Kistos.