UKOG subsidiary signs MOU with Wales and West Utilities to link hydrogen storage with regional pipeline network

UK Energy Storage (UKEn), a subsidiary of UK Oil & Gas, has signed a memorandum of understanding with Wales and West Utilities (WWU) to connect UKEn’s proposed South Dorset salt-cavern hydrogen storage with WWU’s planned HyLine South West hydrogen pipeline system. The collaboration aims to support future joint revenue applications under government frameworks.

UK Energy Storage (UKEn), a wholly owned clean energy subsidiary of UK Oil & Gas (UKOG), has entered into a memorandum of understanding (MOU) with Wales and West Utilities (WWU), the principal gas pipeline operator in Wales and the South West serving approximately 7.5 million customers. According to official disclosures, the agreement outlines collaboration to link WWU’s planned HyLine South West hydrogen pipeline system designed to connect hydrogen suppliers, offtakers, and storage within the region, with UKEn’s proposed South Dorset salt-cavern hydrogen storage project, currently the sole planned national-scale salt-cavern storage node in southern England.

The MOU establishes intent to jointly pursue revenue support through the government’s Hydrogen Transport and Storage Business Model (HTSBM) allocation rounds and to promote the development of hydrogen pipelines, storage, and network infrastructure across the South West and WWU’s broader operating area. The agreement complements an existing MOU between UKEn and National Gas, which envisions national-scale connectivity via Project Union.

This development matters as it addresses a critical infrastructure gap for the emerging UK hydrogen economy: the integration of large-scale storage with regional distribution networks. Hydrogen storage is essential for balancing supply and demand in a decarbonized energy system, and salt-cavern facilities offer scalable, geological storage capacity. The joint approach under the HTSBM aligns with regulatory expectations for coordinated infrastructure proposals.

For energy sector stakeholders, the collaboration signals progress toward a connected hydrogen network in southern England, potentially serving industrial clusters, power generation, and heavy transport. Investors will monitor the progression of revenue support applications and final investment decisions, given the capital-intensive nature of salt-cavern storage and pipeline repurposing projects.

UK Oil & Gas (UKOG) is a UK-listed energy company focused on hydrogen storage and clean energy infrastructure through its subsidiary UK Energy Storage (UKEn). Wales and West Utilities is the gas distribution network operator for Wales and the South West of England, responsible for gas pipelines serving the region.