Jacobs Engineering Group Inc. announced today that it received a contract from Scottish and Southern Energy plc (SSE), in joint venture with Statoil, to provide pre-engineering services for the second phase of SSE-Statoil's underground gas storage (UGS) development in Aldbrough, U.K.

The companies are already developing nine storage caverns at Aldbrough, with a capacity of 420 million cubic metres (mcm). SSE is investing around 150 million pounds Sterling (US$ 313.6 million) in this first phase, out of a total of around 225 million pounds (US$ 470.4 million). Commissioning of the first storage cavern is expected to get under way before the end of this year. It will become the UK's largest onshore gas storage facility.

The second phase is expected to double the site's gas storage capacity from 9 to 18 caverns. The extension will largely be underground, and the intention is to use aboveground facilities already on site, although some additional development will be required. It is expected that the cost for Phase II will be similar to that for Phase I. The extension is scheduled to be complete in 2014, at which point the Aldbrough facility will be able to provide enough gas in a day to supply approximately 13 million homes.

For Aldbrough Phase I, Jacobs performed program management and design, and is currently providing construction management services. The firm has been involved in some of the largest and one-of-a-kind UGS program developments across the U.K. and Europe.

SSE will contribute 50% of the cost of the Phase II extension in return for ownership of 50% of the capacity. On completion of the extension, SSE will own over 800 mcm of gas storage capacity, including its share of joint ventures. This includes its existing gas storage facility at Hornsea, which is adjacent to Aldbrough and which it acquired in 2002.

SSE's Chief Executive Ian Marchant said, "Construction of the extension will help to ensure that the U.K. can meet gas demand during periods of high energy usage, and will be a central part of our investment program going forward."

In making the announcement, Jacobs Group Vice President Allyn Taylor said, "This award reflects SSE's confidence in the high-quality services we are providing to them on Phase I. We obtained planning approval for this extension project in record time because of the positive relationships we have forged on their behalf with the local stakeholders. They recognize that the Aldbrough program helps to secure the nation's gas supply."

Jacobs, with over 52,000 employees and revenues exceeding $8.0 billion, provides technical, professional, and construction services globally.

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