A power company plans to store enough gas under East Yorkshire to supply the whole of the UK on a cold day.
The power supply company E.ON UK has sent hand-delivered letters outlining the scheme to Aldbrough area residents.
It is seeking the views of the council, residents and others on the multi-million pound project.
It said ten caverns would be built 2km underground by 2012 to store 420 million cubic metres of gas, about the amount used in the UK on a cold day.
The company carried out seismic testing across East Yorkshire earlier in the year to assess the area's suitability for underground salt-cavern gas storage.
They say they intend to apply for planning permission for the project, with the gas processing plant sited at Whitehill Farm, Aldbrough.
Engineering manager Derick Cottell said: "It's still very early days but we are committed to working with the community and all our local stakeholders from the outset.
"Developing the proposed scheme is an important step to ensuring we keep the UK's light on and help stabilise energy prices"
"There is an urgent need for more gas storage in the UK as our own supplies decline.
"Developing the proposed scheme is an important step to ensuring we keep the UK's light on and help stabilise energy prices.
"If we get the go-ahead to develop the plant there will be a number of benefits to the local community including new investment and new jobs."
It is hoped a full planning application will be submitted to the council later this year.
Local people will have an opportunity to learn more about the proposed development at a public exhibition later in the year.
E.ON UK is the country's largest integrated power and gas company, employing nearly 13,000 people in the UK. It owns Powergen.
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