A decision to refuse consent for a giant gas store in underground caverns in Lancashire was ruled “unlawful” by the High Court.

Halite Energy had applied to store up to 600 billion cubic metres (bcm) of gas at Preesall near Preston in Lancashire.

Last April the Department of Energy and Climate Change dismissed the project, stating Halite had not shown the site’s geology was suitable.

But judges at the High Court last week said this decision was unlawful and cannot stand. The application will be reconsidered.

Both DECC and local opponents to the scheme said they were disappointed by the ruling.

Keith Budinger, chief executive of Halite Energy said his company will work with its legal and planning advisers on the process towards a “redetermination of our application by the Secretary of State”.