REG - UK Oil & Gas PLC - UKEn signs MOU with Wales & West Utilities

UK Oil & GasAnnouncement

25/03/2026 07:00

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RNS Number : 9746X  UK Oil & Gas PLC  25 March 2026

The information contained within this announcement is deemed by the Company to
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(Withdrawal) Act 2018. Upon publication of this announcement, this information
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UK Oil & Gas PLC

("UKOG" or the "Company")

 

UKEn signs MOU with Wales & West Utilities

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that its
wholly owned clean energy subsidiary, UK Energy Storage ("UKEn") has signed a
Memorandum of Understanding ("MOU") with Wales and West Utilities Limited
("WWU"), the principal gas pipeline operator in Wales and the South West, who
supply gas to around 7.5 million customers in the region. WWU plans to develop
"HyLine South West", a 100% hydrogen pipeline system to connect hydrogen
suppliers, offtakers and storage within the region.

 

WWU recognise that connection to sufficient hydrogen storage to buffer supply
and demand, such as UKEn's planned South Dorset project, will be critical for
the effective future operation of HyLine South West and the establishment of
the region's future hydrogen economy.

 

Consequently, the MOU sets out both parties' intent to collaborate with the
agreed aims of:

 

a)       Linking HyLine South West's pipeline directly or indirectly
with UKEn's South Dorset salt-cavern storage (being, to date, the sole planned
national scale salt-cavern hydrogen storage node in southern England);

b)       Making a potential future joint submission for revenue support
via the Government's Hydrogen Transport and Storage Business Model ("HTSBM")
allocation round process;

c)       Working closely together to promote the development of hydrogen
pipelines, storage and the wider hydrogen network in the South West and across
WWU's wider operating area.

 

By adding  potential regional pipeline connectivity to the South West, this
new MOU complements UKEn's MOU with National Gas (see RNS of 1st October
2025), which envisages national scale connectivity via a direct link of
National Gas' Project Union pipeline to UKEn's storage.

 

Stephen Sanderson, UKOG and UKEn's Chief Executive, commented:

 

"This important MOU is a further essential building block for UKEn's planned
South Dorset hydrogen storage project, enabling its at-scale salt-cavern
storage to be linked seamlessly via WWU's planned HyLine South West pipeline
to the region's hydrogen producers and offtakers.  It also strengthens both
Companies' quest for government revenue support, fulfilling the new HTSBM
criteria which requires regional storage and pipeline operators to make a
joint application.  We very much look forward to strengthening our working
relationship with WWU and ultimately to both projects' delivery."

 

Mathew Hindle, WWU Head of Net Zero & Sustainability, commented:

 

"Across Wales and the South West, green gasses will be essential to
decarbonise industry and other energy users. Our Hyline projects aim to
provide the critical infrastructure to connect hydrogen production and users
and enable repurposing of existing network assets to reduce disruption in the
transition to low carbon energy.

 

Storage at scale will be critical to a resilient, clean energy system, and we
are pleased to be working with UKEn to explore options for linking hydrogen
networks with geological storage facilities. This will be critical to enable
the growth of domestic hydrogen production and support the decarbonisation of
industrial clusters and other energy users."

 

 

For further information, please contact:

UK Oil & Gas Plc

Stephen Sanderson / Kris Bone / Guzyal Mukhametzhanova
                                  Tel: 01483 941493

 

Zeus (Nominated Adviser and Broker)
 

James Joyce / James Bavister / Andrew de Andrade
                              Tel: 020 3829 5000

 

CMC Markets (Joint Broker)

Douglas Crippen
 
                   Tel: 0203 003 8632

 

Communications

Brian Alexander
 
                    Tel: 01483 941493

 

 

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