UK Oil & Gas PLC (UKOG) announced that its clean energy subsidiary has entered into a strategic agreement with Wales and West Utilities (WWU) to develop a sprawling hydrogen pipeline network across South West England and Wales.

The Memorandum of Understanding (MOU) establishes a framework for UK Energy Storage (UKEn) to link its planned South Dorset salt-cavern storage facility with WWU’s proposed "HyLine South West" pipeline. 

The project aims to create a 100% hydrogen system designed to connect regional suppliers, storage nodes, and industrial consumers.

WWU, the primary gas operator for roughly 7.5 million customers in the region, identified the South Dorset project as a critical buffer for the HyLine South West network. The storage facility is currently the only planned national-scale salt-cavern hydrogen node in southern England.

"This important MOU is a further essential building block for UKEn’s planned South Dorset hydrogen storage project," said Stephen Sanderson, chief executive of UKOG and UKEn. He noted that the partnership allows for a "seamless" link between production and end-users.

The collaboration also addresses new government criteria for the Hydrogen Transport and Storage Business Model (HTSBM). 

Under the MOU, both companies intend to submit joint applications for government revenue support, a process that now favors integrated regional storage and pipeline proposals.

Mathew Hindle, head of net zero and sustainability at WWU, said the HyLine project is essential for repurposing existing infrastructure and decarbonizing industrial clusters.

"Storage at scale will be critical to a resilient, clean energy system," Hindle said. "This will be critical to enable the growth of domestic hydrogen production."

The agreement, which further expands UKEn’s infrastructure footprint, comes just months after WWU launched a feasibility study for HyLine South West to explore how hydrogen could help decarbonize heavy industries. 

It also complements an existing October 2025 agreement with National Gas, which envisions connecting the South Dorset site to the national "Project Union" pipeline. 

By securing both regional and national pipeline connectivity, UKEn aims to position its salt caverns as a central hub for the UK's burgeoning hydrogen economy.