Dynegy Inc. is close to selling the largest natural gas storage asset in Europe, its undersea storage facility Rough, which is located off the northeastern coast of Great Britain, according to Reuters sources. Dynegy, then set to blaze a trail through Europe, paid more than $600 million for Rough and a large package of storage and pipeline assets from UK-based BG Group plc last year (see Daily GPI, Nov. 29, 2001).

David Byford, a Dynegy spokesman, said only that “there is interest in Rough,” but he could not confirm or deny that a sale is pending.

Dynegy sold another one of the former BG assets, the Hornsea storage facility, in September for $200 million (see Daily GPI, Oct. 1). Rough, however, is considered to be worth considerably more. The depleted gas field represents 85% of the UK gas storage capacity.

Reuters claims that Centrica plc, based in London, is the buyer, and said that an announcement will be made within days. Centrica, which has begun a push for an expanded business in North America, is the largest natural gas utility in Great Britain. Rough and Centrica originally were part of the British Gas monopoly, which was broken up in 1996.

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