Etzel Storage Site: Ensuring Security of Supply
A geological formation described by its owner as "a salt bed of outstanding quality and size," E.ON Gas Storage's Etzel Storage Site in Germany was completed in 2012 and has thus been nominated for "Project of the Year" at this year's European Gas Conference, taking place in Vienna, Austria, 28 January - 1 February.
With the nomination in mind, Dr. Peter Klingenberger, CEO of E.ON Gas Storage GmbH, described the Etzel Storage Site and, among other questions, explained why it is such an outstanding natural gas project in Europe.
Could you tell us a bit about the work involved in preparing the Etzel Storage site? How long did it take?
Dr. Klingenberger: After only about two years of construction, the new Etzel gas storage facility was officially opened in October 2012. Technical commissioning of the installations was already completed on 3 June 2012 according to schedule. Since then, natural gas had been flowing into the underground salt caverns. The start of initial gas filling was an important milestone for all sides involved. Project success has been down to exceptional team spirit. Far in excess of 1 billion normal cubic meters of gas has already been injected into storage. On 1 December 2012, the storage facility was ready for gas withdrawal - the second critical milestone of this storage project. Etzel is thus fully on track. Thanks to efficient and effective project management and professional operation in the market the project remained well below its approved budget. All figures are quite impressive in my eyes: for example, more than 6,000 staff, about 2 million working hours, 2 billion cubic meters of working gas, four strong partners.
How did E.ON decide to pursue this project?
Dr. Klingenberger: E.ON first looked into building a new storage facility back in 2005/2006 because demand for storage capacity was increasing. Plans became more concrete in 2008, and consequently, the application for permission to build and operate a new storage facility in Etzel was filed with the competent authority (LBEG – the Lower-Saxony Office for Mining, Energy and Geology) in September 2009. In October 2010, E.ON Gas Storage (EGS) received from LBEG the planning decision notice granting permission for the construction and operation of a new station for the storage of natural gas at Etzel. Preparations for the construction project were completed, and EGS was able to go ahead with the construction of the station.
What did the project cost?
Dr. Klingenberger: With a storage capacity of some 2 billion cubic metres of working gas and an investment of over EUR 1 billion, Etzel is one of the world's largest cavern storage facilities. It has been built to the highest international environmental and safety standards and is of crucial importance for the security of natural gas supply in Europe.
What did the different companies involved in the project bring to the table?
Dr. Klingenberger: The "ESE – Erdgasspeicher Etzel" joint venture is a very successful cooperation project led by E.ON Gas Storage GmbH who have teamed up with three strong and competent partners: OMV represented by its German subsidiary OMV Gas Storage Germany GmbH, VNG Gasspeicher GmbH and Gas-Union GmbH, all of which have many years of experience in the natural gas storage industry.
E.ON Gas Storage has the role of the technical plant operator and is one of the major European gas storage companies. Together with its Austrian affiliate Gas Storage Austria as well as its subsidiaries in UK and Hungary the company has storage capacities in a total of 21 underground storage facilities.
Were there any public opposition issues you had to deal with involving Etzel? If so, what was your strategy?
Dr. Klingenberger: Continuous PR work based on open, transparent and credible communication has helped to ensure that the project is viewed positively by the general public. Well over 200 visitors interested in the project were shown around the site and informed about natural gas storage. There is a website showing the status of construction activities, and there was an on-site info point for people looking for more information. The "Open Day" held as part of the inauguration of the storage facility also met with a huge response, with over 1,000 local residents visiting the new station to gain a rare insight into the technology and the operation of the storage caverns.
What does Etzel mean for Germany's security of supply? For Europe's?
Dr. Klingenberger: Storage facilities help to ensure security of supply, acting as an indispensable link between the almost constant gas supply from producer countries and seasonally fluctuating demand. In addition, storage facilities are increasingly used for trading purposes. Thanks to the latest technology, Etzel can guarantee maximum security and flexibility for customers. A huge advantage of the site is its proximity to three different market areas in Germany and the Netherlands. But Etzel will also take on a more important role for supply security and the transformation of Europe's energy systems with greater use of wind and solar power.
As one of the largest European gas storage companies, we are committed to progress and to promoting activities in the field of technology and innovation. We want to develop innovative technologies for the transportation and storage of energy and show once more that sustainability is the key to the future.
Are there any other aspects of the Etzel project which make it stand out among European natural gas infrastructure investments?
Dr. Klingenberger: Thanks to state-of-the-art technology, Etzel meets the highest safety standards and offers our customers greater flexibility. Key to the successful realization of the project was an integrated owners engineering team set up by E.ON to coordinate more than 250 vendors throughout the erection period, achieving delivery on time and well under budget.