A proposal to store gas off the coast of Barrow by Stag Energy has been put on hold due to a lack of financial backing.
The Gateway project would see 1.5bn cu m of gas stored in 24 salt caverns under the Irish sea, facilitated by two pipelines and an onshore gas storage facility at Barrow.
However, due to the economic downturn Stag has been unable to secure backing.
Chris McKerrow, from Gateway, said: “We have been stalled because of the economic climate but there is still a great need for gas and we are fully confident we will find the financial backing.”
Gateway is said to add an extra 30 per cent to current UK gas storage capacity, sufficient to meet five days of Britain’s average gas demand.