DRILLING has started at the Byley gas plant where the first phase of storage is set to be operational by early 2009.

This second stage of work by E.ON UK to create eight caverns at the Holford gas storage facility marks an important milestone in the construction programme, which began in August last year.

Most major civil works have nearly been completed and during the drilling process, which is expected to continue for the next year, the infrastructure for bringing water to the site and piping brine away will be completed.

The company expects to complete the project by 2010.

Project manager Mike Cooper said: "This is an exciting time for the team as it shows we're making real inroads on bringing this important project on stream in time to help the UK store more gas as demand rises and North Sea production declines.

"This stage involves drilling down to about 1,400ft and, once we've got down to that level, we'll be putting in steel casing that will maintain the shape of the wells in preparation for the creation of the caverns themselves."

Once completed the facility will be able to store around 165 million cubic metres of gas.