THE HAGUE, 14/01/06 - Gas transport company Gasunie and energy concern Nuon are to store natural gas underground near Zuidwending in the province of Groningen. They are setting up a joint venture (Aardgasbuffer Zuidwending) to store the gas in four caverns, created by salt mining.

The gas buffer is expected to be operational by end-2009. The total investment in the entire project amounts to around 350 million euros. The buffer will facilitate a flexible response to short-term fluctuations in demand for gas. This will increase security of supply and strengthen market forces. Gas has already been stored in caverns in neighbouring countries for years.

The caverns will be at a depth of between 1,000 and 1,500 metres. The total storage capacity amounts to some 180 million cubic metres. Construction will begin this month and will be carried out by contractors Heijmans, Controlec and Vos Mechanical Contracting. Chemicals company Akzo Nobel is involved in the salt extraction.

Gasunie and Nuon will each have the right to part of the storage volume. The companies are building the installation together, but will market their share of the gas independently from one another.