Energy minister Greg Barker turned down a gas storage application by Halite Energy last April, saying the US company had failed to show the geology of the site was suitable. The project also faced local opposition.
Following a judicial review, Mrs Justice Patterson overruled the refusal in January, saying it was based on an “unfair and flawed assessment of the geological challenges”.
Government initially lodged an appeal but withdrew it last month. The head of national infrastructure consents last week wrote to the company to ask for more geological information.
Halite Energy’s plans involve storing up to 900 million cubic metres of gas in 19 salt caverns under Preesall.
According to the firm’s website, Preesall is one of the only places in the UK where underground gas storage in salt is possible.
The UK has relatively little gas storage compared to other European countries. Last September, government ruled out subsidies to encourage more gas storage, saying security of supply could be delivered more cheaply by the market. Centrica subsequently abandoned two gas storage projects.