Kistos Holdings PLC - Energy Company focused on gas assets in the North Sea and Netherlands - Enters into a sale and purchase agreement to acquire the gas storage arm of EDF Energy Ltd for a total consideration of GBP25 million. EDF Energy owns the Hill Top Farm and Hole House Farm gas storage facilities in Cheshire, England. Kistos will assume operatorship of both sites and is planning to put in place an agreement to work alongside a partner to trade the gas. The Hill Top site has a gas capacity of 17.8 million therms, 3.1% of the UK's total onshore gas storage capacity, with an ongoing programme to increase this to 21.2 million in the short term. The Hole House facility is currently non-operational. Both sites have the capacity to be repurposed to store compressed air or hydrogen, Kistos says, which would "place these assets firmly into the transitional energy space beyond the current key role they play in the UK's supply of gas".
Executive Chair Andrew Austin says: "Our entry into the gas storage market marks another advancement in our growth strategy to expand the business through value-accretive acquisitions. Not only do these assets complement our upstream UK assets, but they also diversify our presence across the energy value chain with a foothold in the midstream market."
Current stock price: 149.50, up 8.3% in London on Tuesday morning.
12-month change: down 59%
By Hugh Cameron, Alliance News reporter
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Kistos Holdings (KIST)