Halite Energy Group goes into liquidation

Halite Energy Group, which had been developing an underground gas storage facility in Preesall, Lancashire, has gone into liquidation.

The company, which won a landmark legal battle in 2014 having initially been denied permission the previous year, planned to create up to 19 purpose-built underground gas storage caverns.

Donald McKinnon, turnaround specialist at wbg accountancy, has been appointed to liquidate the firm. He said: "Halite Energy Group had the rights to develop a fully permitted gas storage facility in former salt caverns. When developed, the site would account for 25% of the UK’s gas storage capacity.

"However, earlier this year, the company’s agents estimated that the costs to complete the project were in the range of £5.7m to £7m. 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."