Member Info for Potential2Rise

Expect massive re rate when UKOG announce this investment from next week onwards 💲💲

The £2.4–£2.6 billion allowance granted to Wales & West Utilities (WWU) for the 2026–2031 period (RIIO-GD3) isn't just a "maintenance budget"—it is a strategic decision by Ofgem to ensure the gas network doesn't become a "stranded asset" as the UK moves toward Net Zero.

​Ofgem’s rationale for this massive allocation boils down to four main drivers:

​1. Mandatory Safety & "Repex" (£1 Billion+)

​The largest chunk of the money is for Replacement Expenditure (Repex).

​The Mandate: Under Health and Safety Executive (HSE) rules, WWU is legally required to replace old, high-risk iron mains with plastic (polyethylene) pipes.

​The Hydrogen Angle: Ofgem approved this because these new plastic pipes are "hydrogen-ready." By funding this now, they are ensuring that if the UK switches to hydrogen heating in the 2030s, the pipes in Wales and the South West won't need to be dug up and replaced all over again.

Wowzer!!!

Wales West Utilities could raise huge cash in the bond markets... This is truly impressive!!

Well we'll, just when derampers thought UKOG was messing around this is serious company WWU

West Utilities Finance plc that has bonds (debt) listed on the London and Luxembourg Stock Exchanges, which is common for large infrastructure firms.

Ukog MoU with Wales West Utilities,

£2.5B company.......

No company of this size MoU with tiny Mcap company unless they are willing to take it to the next level

Value (2026)

✅RAV (Regulatory Asset Value) £2.3B - £2.5B

✅Annual Revenue £600M+

✅Annual EBITDA £300M - £400M

✅Customers Served 7.5 Million

E: It is one of the eight regional gas distribution networks in the UK, covering Wales and the South West of England.

​History: It was formed in 2005 after National Grid sold off several of its local networks. The CK Hutchison-led consortium acquired the company in 2012.

​Headquarters: Newport, Wales.

Wales & West Utilities (WWU) is a private limited company and is not listed on any stock exchange. While it is a private entity, it does have a subsidiary called Wales & West Utilities Finance plc that has bonds (debt) listed on the London and Luxembourg Stock Exchanges, which is common for large infrastructure firms.

​Ownership

​The company is owned by a consortium of companies controlled by the Hong Kong-based multinational CK Hutchison Holdings. Specifically, the ownership is split between several entities within the "Li Ka-shing" business empire:

​CK Infrastructure Holdings (CKI): A major global infrastructure company.

​CK Hutchison Holdings: The parent conglomerate.

​Power Assets Holdings: An international energy investment company.

Future for UKOG Looks huge..... Absolutely huge

The UK Government is launching the Hydrogen Storage Business Model (HSBM) in 2026. This model requires storage providers (like UKOG) and pipeline operators (like National Gas) to submit joint applications.

​By aligning with these massive network operators, UKOG is effectively making itself the "landlord" for the hydrogen that Japanese and Qatari-backed producers will eventually need to store.

Japan, Qatar, UK government making over £20b of investment in hydrogen

At least *few hundred million could should come to UKOG

Japan, Qatar, UK government making over £20b of investment in hydrogen

Only few hundred million could should come to UKOG

No placing as they raised £5m only few months ago...... Nice try Derampers

​Marubeni Corporation: Marubeni has committed to spending approximately £10 billion in the UK over a ten-year period. Their focus includes green hydrogen projects in Scotland (decarbonizing the energy grid) and Wales (industrial decarbonization).

Wow..... Japan to invest £17billion in Wales, Scotland, England

That's huge

UKOG has a massive Tailwind........ In hydrogen

Major Investment Commitments

​The scale of Japanese investment in UK hydrogen and offshore wind has reached record levels over the last few years:

​Sumitomo Corporation: In July 2025, Sumitomo signed a memorandum of understanding (MoU) with the UK government to invest £7.5 billion ($10 billion) by 2035. This funding is specifically earmarked for hydrogen projects and offshore wind, supporting the UK’s goal to become a "clean energy superpower."

​Marubeni Corporation: Marubeni has committed to spending approximately £10 billion in the UK over a ten-year period. Their focus includes green hydrogen projects in Scotland (decarbonizing the energy grid) and Wales (industrial decarbonization).

For a small company like UKOG, the presence of Qatari capital in the UK hydrogen market is a major "macro" tailwind. When a massive fund like QIA looks to invest in a national network like Project Union, they look for "bankable" assets—meaning projects that have the land, the permits, and the engineering ready to go.

​By securing the East Yorkshire and South Dorset sites now, UKOG is essentially positioning its assets to be the "infrastructure" that Qatari-funded hydrogen will eventually flow through.

Qatar Investment in billions

UK government to invest in billions

Japan to invest as well

Qatar to invest £1 billion in climate technology, boosting the UK’s position as a clean energy superpower

British engineering giant Rolls-Royce to benefit from investment in projects supporting the clean energy transition

The Prime Minister and His Highness The Amir of Qatar will mark this initial milestone in the new UK-Qatar clean energy partnership in Downing Street as part of the Qatar State Visit

Good news 👇

Qatar, they are a primary candidate for "off-take" agreements and infrastructure financing.

​Strategic Alignment: Qatar’s global strategy is to move from being "The Gas King" to "The Hydrogen King." By investing in the UK's Project Union (the national hydrogen backbone), they ensure there is a market for the blue hydrogen they plan to produce using their massive natural gas reserves.

​Capital Availability: As of January 2026, the QIA has expanded its "Fund of Funds" by an additional $2 billion, with a specific mandate to invest in international infrastructure and energy security.

Technically ukog is going to benefit from £164m ofgem investment to national Gas.

That's an achievement for UKOG, more to come folks..... Google "Ofgem gave e £164m to national Gas"

Why UKOG is in the middle of this

​Because UKOG is focusing on Salt Cavern Storage, they are solving the "Storage" part of this equation.

​Without companies like UKOG providing the "warehouse" (caverns), the wind energy being turned into hydrogen has nowhere to go. This is why National Gas is partnering with them—they provide the "battery" that never leaks and never runs out of space.

This one for you Antc1781

Ofgem doesn't grant £164m to projects that aren't technically viable. This funding "proves" that the government believes the East Coast hydrogen network (including the storage UKOG provides) is going to happen.

National Gas is spending the £164m. UKOG gets the benefit of a pipeline being designed to their doorstep without spending a penny of their own shareholders' money on the pipe itself.

Did anyone see this before?

£800m investment is nothing compared to savings of £1 billion to £3billion per year on wasted wind energy....

This must be government priority.

These type of projects makes billionaires add more billions in their business.....

Do the maths.....