Start of Construction

RNS Number : 6186V

Portland Gas plc

14 July 2009

 



For Immediate Release

14 July 2009

Portland Gas

Date set for the start of construction of the Portland Project

The Directors of Portland Gas plc (AIM: PTG) ('the Company' or 'Portland Gas') today announce that it plans to commence construction of the Portland Project on 31st July 2009. The initial works on the wellpad will be performed by Hydrock Group Limited. 

In parallel the Company will launch a formal process shortly to secure full funding for the project. An Information Memorandum, process timetable and the project construction programme are currently being finalised. 

Dr Andrew Hindle, CEO of Portland Gas commented: 

'Following discharge of the pre-start planning conditions, we are pleased to be able to start construction whilst continuing to seek full funding for the Portland Project. This is an exciting milestone in the development of what will be the largest gas storage facility onshore UK.'

'Hydrock has already proved themselves on the Portland project through the successful completion of a ground investigation programme and design of the ground engineering works on the Portland site in 2007 and is the preferred contractor to undertake the initial site construction work. Hydrock has an excellent reputation and has been placed in the top 100 companies to work for by the Sunday Times for the past three years.'

Commenting on the agreement with Portland Gas, Managing Director of Hydrock, Brian McConnell said: 

'We recognise the importance of the Portland Project to securing energy supplies to the UK for the future and look forward to working with Portland Gas to ensure its successful development.' 

  For further information please contact:

Portland Gas plc Andrew Hindle, Chief Executive Officer  Craig Gouws, Chief Financial Officer	020 8332 1200
PR - Watershed Sara Hudston	01308 420785
Investor Relations - Buchanan Communications  Ben Willey	020 7466 5000
Nominated Advisor and Broker - Seymour Pierce  Jonathan WrightSarah Jacobs  Richard Redmayne	020 7107 8000

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.

Background on Hydrock

Hydrock is a construction services group providing consultancy and specialist contracting services across a number of sectors including energy, regeneration, waste, development and mining and quarrying.

The group's head office is at Almondsbury, near Bristol and has nine other offices throughout the UK. The Company has built a strong reputation for solving complex (and interesting) engineering problems from the ground up. Hydrock Group employs approximately 400 people and the highly prestigious 'Sunday Times Best 100 companies to work for Survey' has placed Hydrock amongst the top companies to work for in the UK for the fourth year running.

Portland Project

At 1000 million cubic metres ('mcm') or 35 billion cubic feet ('bcf') of working gas, it will 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. On peak demand days the withdrawal rate could be boosted to 30mcm 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. 

Islandmagee Storage Project

The proposed 500mcm (18bcf) facility will be the largest on the island of Ireland and make a significant contribution to the security of gas supplies. Portland Gas plc has a 65% interest in the project. Its partner in the project is a subsidiary of Northern Ireland Energy Holdings Limited, the owner of the Scotland to Northern Ireland gas pipeline. The facility is being designed to inject gas at 12mcm and withdraw gas at 22mcm per day. The cost of construction has been estimated at £229m, including cushion gas. A successful public exhibition was held on Islandmagee in June 2009 and work is continuing towards the submission of a planning application before the end of 2009.

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

 

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