Taqa, Gazprom agree on Dutch gas storage project

AMSTERDAM, Aug 20 (Reuters) - Abu Dhabi National Energy Company TAQA.AD said on Thursday it had agreed with Russia's Gazprom (GAZP.MM) to jointly develop a gas storage project in the Netherlands.

It follows a memorandum of understanding between the companies signed in December last year. [ID:nL5387991]

Gazprom will provide cushion gas for the project, which is necessary to ensure the reservoir has optimal pressure to start storage activities, in exchange for working capacity and a participating interest in the operator of the facility.

The agreement is conditional upon a final investment decision for the project, which is expected to be reached in coming months, Taqa said in a statement.

Taqa is working on the Bergermeer project with developers Dyas, Energie Beheer Nederland and Petro-Canada (PCA.TO). They aim to use a depleted gas reservoir north of Amsterdam for storage with a working volume of around 4 bcm and an extra 4.6 bcm of cushion gas to control the pressure.

Construction of the facility is expected to start in 2010 and it should be operational by 2013, Taqa said. (Reporting by Catherine Hornby)