Chester Natural Gas has said it will build a 100MW new natural gas plant in the Yorkshire region, which will allow it to expand its operations beyond the area’s existing gas-fired power plants.
The £30m plant, which is expected to be complete in 2021, will be located in the town of Ealing in the North Yorkshire region.
It is expected that the plant will be able to generate an additional 5GW of electricity over a 20-year period.
Chester Energy is the UK’s second largest natural gas producer and the UK Government’s largest private investor in the energy sector.
It owns a 25 per cent stake in Devon Energy, which supplies electricity to the UK and is the second largest energy company in the country after BP.
The company is the biggest single shareholder in the UK energy market, with around £8.3bn ($12.3 billion) in assets.
The firm is also the largest UK oil and gas producer, owning nearly 60 per cent of the UK oil fields.
In 2015, the company reported a £5.5bn operating profit.
In 2017, the oil and natural gas sector made up almost half of Chester Energy’s total revenue of £13.4bn, with the gas-fueled power plant accounting for the majority of that figure.
The plant is expected by Chester Energy to produce up to 5GW, or 10 per cent, of its expected electricity output, which has a total annualised power bill of £1.2 billion.
Chest has also announced a further £50m investment in a gas-powered transmission line in the region, a move which it hopes will make the area a major hub for transmission for the country.
The project is also expected to provide £300m to the local economy.