EnergyPathways (AIM: EPP) has been granted Licence Operatorship for Block 110/4a, which includes the company’s proposed Marram Energy Storage Hub (MESH) project.
The North Sea Transition Authority (NSTA) approved the company’s application for the block in the UK Irish Sea, which also includes its proposed Marram gas field development.
The MESH proposal includes underground geo-storage capacity of around 50 bcf of gas.
Located around 11 miles off the coast of Lancashire, Northwest England, MESH forms part of the company’s Marram gas field development, with MESH initially planned to be used to store natural gas produced from Marram, with the potential for conversion to green hydrogen storage in the longer term.
Marram is a shallow-water discovery containing an estimated 40-50bcf of recoverable resources and is 100% owned by EnergyPathways.
The group said that it would focus on developing MESH over the Marram gas project.
EnergyPathways previously submitted a gas storage licence application to the NSTA for its proposed offshore MESH project.
In addition, EnergyPathways announced that it has signed a subsea engineering service agreement with PDi.
The company will provide engineering study support for the Marram field development regarding the tie-in connection of MESH as part of pre-front end engineering and design (FEED).
The appointment of PDi follows the recently announced appointment of Wood as project lead engineering partner for MESH.
EnergyPathways CEO Ben Clube called the NSTA’s approval “an endorsement by government authorities of our operating capabilities and is a necessary milestone to keep us on track towards our plans to achieve FID on MESH later this year”.
He added that PDi will provide “support to EnergyPathways as we progress MESH through the pre-FEED process. PDi is a highly experienced UK company that is a leader in the provision of project management with specific subsea capabilities relevant to MESH.
“This winter’s conditions highlight the importance of the need to increase the UK’s natural gas and energy storage capacity to improve its energy security and to alleviate the impact of volatile global energy prices on UK household budgets.”
The Licence Operatorship comes ahead of EnergyPathways’ upcoming submission of its field development plan and environmental statement.
The company aims to make a final investment decision on MESH in late 2025, with first energy supplies expected to commence in 2027.
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