Planning Submission Islandmag

RNS Number : 0053J

Infrastrata PLC

23 March 2010

 



For Immediate Release                                                                       23 March 2010                                                                          

PRESS RELEASE

Planning Submission for Islandmagee Gas Storage Project

The Directors of Infrastrata plc (AIM: INFA) ("the Company") are pleased to announce that the Planning and Hazardous Substances Applications for the Islandmagee Storage Project are being submitted today to the Strategic Projects Unit of the Northern Ireland Planning Service.

The proposed storage facility is designed to store 500 million cubic metres of natural gas in seven caverns to be created at a depth of 1,500 metres within a Permian salt sequence. The site is ideally located close to existing gas infrastructure and in what the Company believe is the thickest development of salt in Northern Ireland at Ballylumford on Islandmagee, County Antrim.

The facility will make a significant contribution to the security of energy supplies and is designed to supply up to 5% of UK and Ireland demand on a peak day. In the event of a supply disruption from Scotland the facility could meet more than 60 days of peak demand within Northern Ireland. The project will create new jobs, and reduce the operational costs and future investment requirements of the existing gas transportation infrastructure.

The applications are being submitted by Islandmagee Storage Limited which is 65% owned by the Company. A copy of the non-technical summary can be downloaded from the project company website www.islandmageestorage.com.

Commenting on the news, Andrew Hindle, CEO of Infrastrata plc said:

"The planning application today is a major milestone on the road to making this very important infrastructure development a reality. We look forward to continuing to work in partnership with the industry, government, community and regulator during the development of the project.

This proximity to infrastructure reduces both the environmental impact of the facility and its cost of construction. The estimated cost of £250 million, including cushion gas, is very competitive when compared to other proposed storage facilities in the UK on a storage volume basis especially given the flexibility of storage service it could offer."

For further information please contact:

Infrastrata plc

Andrew Hindle, Chief Executive Officer                                               020 8332 1200

Craig Gouws, Chief Financial Officer

Financial PR - Buchanan Communications

Richard Darby                                                                                  020 7466 5000

James Strong

Miranda Higham

Nominated Advisor and Broker - Seymour Pierce

Jonathan Wright                                                                               020 7107 8000

Richard Redmayne

Notes to Editors:

Background on Infrastrata plc

Infrastrata's 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.

Further information is available on the Company's website www.infrastrata.co.uk.

Background on the Islandmagee Storage Project

The proposed 500 million cubic metres ("mcm") facility will be the largest on the island of Ireland and the first for Northern Ireland. It will make a significant contribution to the security of gas supplies. The facility is being designed to inject gas at 12 mcm and withdraw gas at 22 mcm per day. The cost of construction has been estimated at circa £250 million, including cushion gas.  The project is owned by Islandmagee Storage Limited an independent Northern Ireland registered company; a joint venture between Infrastrata UK Limited (part of the Infrastrata plc group of companies) - 65% shareholder and Moyle Energy Investments Limited (part of the Mutual Energy group of companies) - 35% shareholder. Moyle Energy Investments Limited will require Regulatory approval to participate in the construction of the project; in the meantime Infrastrata UK Limited is providing 100% of the development capital via shareholder loans. Further information is available on the website www.islandmageestorage.com.

Background on Mutual Energy Limited ("MEL")

MEL is a company limited by guarantee. Its principal objective is to own and operate energy infrastructure assets in the interests of the energy consumers of Northern Ireland.  The company is a mutualised entity and therefore has no shareholders and its primary stakeholders are energy consumers.

MEL subsidiary Premier Transmission Limited operates the Scotland to Northern Ireland natural gas transmission pipeline ("SNIP"). The 24-inch diameter pipeline is 135 kilometres long and runs from Twynholm in Scotland to Ballylumford in Northern Ireland. It transports gas to Ballylumford Power Station which generates over half of Northern Ireland's electricity needs and feeds the natural gas distribution system in Belfast and the Greater Belfast area. MEL also operates the Belfast Transmission Pipeline and the 500 megawatt Moyle electricity interconnector to Scotland. Further information is available on MEL's website www.mutual-energy.com.

 

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