Halite Energy Group, the company behind plans to develop a large-scale underground gas storage facility in Preesall, Lancashire, has appointed Wbg turnaround specialist Donald McKinnon as liquidator.
The ambitious project aimed to deliver up to 19 purpose-built underground gas storage caverns, significantly boosting the UK’s gas storage capacity at a time of increasing concern over energy security.
Once completed, the facility was expected to play a key role in stabilising the UK’s energy supply by mitigating gas shortages, reducing price volatility and supporting intermittent renewable energy sources such as wind power. By storing gas in newly created salt caverns, the development would have provided critical backup during periods of fluctuating electricity generation.
Donald McKinnon confirmed that the project had secured the necessary permissions and held considerable strategic importance.
“Halite Energy Group had the rights to develop a fully permitted gas storage facility in former salt caverns,” he said. “When developed, the site would account for 25% of the UK’s gas storage capacity.”
However, despite its potential, the project ultimately proved financially unviable.
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“Earlier this year, the company’s agents estimated that the costs to complete the project were in the range of £5.7 million to £7 million,” McKinnon added. “With insufficient revenue streams to meet these costs and an inability to secure additional funding, the directors made the difficult decision to cease trading and appoint myself as liquidator.”
The collapse of Halite Energy Group marks a significant setback for efforts to expand domestic gas storage infrastructure, which has been under increasing scrutiny amid ongoing energy market volatility.
Interested parties seeking further information or wishing to explore acquisition opportunities relating to the company’s assets are encouraged to contact Donald McKinnon at Wbg on 0141 566 7000.
