Formation of Co-operation Gro

RNS Number : 2618B

Portland Gas plc

23 October 2009

 



23 October 2009                                                                                             For Immediate Release

Portland Gas 

Formation of Co-operation Group of potential investors in the Portland Project

The Directors of Portland Gas plc (AIM: PTG) ("the Company") are pleased to announce that a Co-operation Group has been established in connection with the proposed 1 billion cubic metre gas storage project which is to be created at the Isle of Portland in Dorset, UK.  

The Group consists of five companies who have each expressed an interest in possibly acquiring a working interest in the Portland Project, together with Infrastrata UK Limited (the subsidiary of Portland Gas plc that currently owns Portland Gas Holdings Limited ("PGL")). The Group will work together to conduct a feasibility study in respect of the Project. PGL's legal advisor, Field Fisher Waterhouse LLP, will draw up a Shareholders' Agreement and a separate Capacity Agreement. In parallel, PGL's project finance advisor, BNP Paribas, will work on the development of the financing structure.

For further information please contact:

Portland Gas plc

Andrew Hindle, Chief Executive Officer                              020 8332 1200

Craig Gouws, Chief Financial Officer

PR - Watershed

Sara Hudston                                                                 01308 420785

Investor Relations - Buchanan Communications 

Ben Willey                                                                    020 7466 5000

Nominated Advisor and Broker - Seymour Pierce 

Jonathan Wright                                                            020 7107 8000

Sarah Jacobs 

Richard Redmayne

  Notes to Editors:

Background on Portland Gas plc

Portland Gas' business is focused on the development of two gas storage projects in the United Kingdom at Portland, Dorset and at Islandmagee, County Antrim, Northern Ireland. The two projects could between them provide over 10% of the total UK and Ireland peak daily demand in the latter part of the next decade. The Company is also developing new projects in mainland Europe initially focussing on Germany and Spain. The Company is one of only a few in Europe focused specifically on gas storage development, a sector with significant growth potential in Europe over the coming decades. In order that the "Portland Gas" name can remain with the Portland Project where it is very well established in Dorset, the Directors intend to seek approval at the next Annual General Meeting of the Company, scheduled for December 2009, to change the name of Portland Gas plc to "Infrastrata plc". The Portland Project company, Portland Gas Holdings Limited, would then be renamed to "Portland Gas Limited".

Portland Project

At a projected 1,000 million cubic metres ("mcm") or 35 billion cubic feet ("bcf") of working gas, the facility would be the largest onshore gas storage facility in the UK. Planning permission was granted by Dorset County Council in May 2008 and Pipeline Construction Authorisation was granted by the BERR (now known as the Department of Energy and Climate Change) in July 2008. The gas storage facility is designed to inject or withdraw gas at 20mcm per day. The current estimate of total development cost for the project is £456m. The project will use brine compensation technology and will not require cushion gas. 

Background on Field Fisher Waterhouse LLP

Field Fisher Waterhouse LLP ("FFW") is a substantial European law firm with over 130 partners and over 300 other lawyers and offices in London, Paris, Brussels, Hamburg and Manchester and associated offices in a number of Spanish and Italian cities. The firm is used to, and has extensive experience of, advising in relation to major projects and joint venture structures, both in the energy sector and in other fields. In particular FFW acted in relation to the UKߛContinent Gas Interconnector project from its inception in the early 1990s, providing independent advice to the project company in establishing the structure of, and documentation for, the project in conjunction with the project participants. FFW continue to act for Interconnector (UK) Limited today. FFW have much other relevant experience, including in relation to gas storage projects.

Background on BNP Paribas

BNP Paribas Group is one of the world's largest Banking groups with a strong balance sheet of over €1,517 billion and a market capitalization of approximately €27.6 billion (as of December 2008). With over 205,000 employees and an active presence in over 83 countries, it is a leading international institution operating in the world's seven largest financial centres and engaged in structured financing worldwide. BNP Paribas' franchise in Project Finance relies on an experienced team of over 100 professionals. BNP Paribas has been awarded Best Global Infrastructure & Project Finance House by Euromoney in 2009.

Further information is available on the Company's website www.portland-gas.com. 

 

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