St Fergus and Hatton Needs Case Decision

Publication date
26th November 2019
Information type
Policy area

We are publishing our decision on the need for investment in new compressor units at St Fergus and Hatton.

National Grid Gas Transmission (NGGT) operates a number of gas fired compressor units across its transmission network. These units emit air pollutants that NGGT is obliged under law to control and manage.

In 2015 and 2018, NGGT put forward reopener submissions which included compressor works at its St Fergus and Hatton sites to make them compliant with the relevant emissions legislation. We rejected NGGT’s application for funding on both occasions. However, as part of our 2018 reopener decision, we stated that we would work with NGGT to review the needs case and its preferred solution for emissions compliance at St Fergus and Hatton once it has made a decision on the solution for each site.

In June 2019 NGGT submitted an updated needs case for investment at its St Fergus and Hatton sites. Our assessment of this submission is based on the assessment approach we set out in our reopener 2018 decision, with consideration given to our RIIO-2 objective of ensuring that networks are prepared for the future and reflect the needs of the existing and future consumers.

We published our initial views on this needs case in our August consultation, and we have taken the responses we received into account when making our final decision.