HM Treasury Support for Islandmagee Gas Storage

RNS Number : 1080R

Infrastrata PLC

22 October 2013

 

22 October 2013                                                                            For immediate release

InfraStrata plc

HM Treasury Support for Islandmagee Gas Storage Project

InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce its gas storage project at Islandmagee in County Antrim has today been named as a pre-qualified project, under HM Treasury £40bn infrastructure guarantee scheme. The full text of the announcement made by its subsidiary Islandmagee Storage Limited today is provided below.

"Hot on the heels of being designated as an EU 'Project of Common Interest', the major £400million gas storage project being developed at Islandmagee, Co Antrim has received another significant boost - this time from the Treasury in London.

The project has been 'pre-qualified' (deemed eligible for support) under the Treasury's 'UK Guarantee Scheme' which is making cover of up to £40billion available to ensure that key infrastructural projects across all sectors in the UK, those that really ought to go ahead, are not held back due to any difficulty in obtaining finance. Under the scheme the Government will guarantee a certain proportion of the capital required to fund projects, so that banks can lend more freely in today's risk-averse lending environment.

The pre-qualification of the Islandmagee project by the Treasury was today welcomed by the project developers Islandmagee Storage Ltd (IMSL).  ISML Director Paddy Larkin said,

"We welcome that, at a time when it is trying to make savings, the Government is ready to lend its backing to ensure that the most important infrastructure projects, such as IMSL's gas storage project, can get the finance they need.

"In our case, we are particularly pleased that of the 16 projects publicised today, we are the only one from Northern Ireland and the only natural gas storage project anywhere in the UK. This underscores the fact that our project is not only hugely important for Ireland, North and South, but for security of supply and system flexibility across these islands and beyond."

Mr Larkin added,

"ISML remains very confident that this project can be financeable and that Governments and markets recognise the value that it can bring. This is great news from the Treasury. It is well understood in Government that at Islandmagee, with its uniquely favourable geology and proximity to strong points on the gas and electricity networks, we have an overwhelmingly advantageous location for a gas storage facility.

"We welcome both the 'vote of confidence' from the Treasury but also the fact that they are ready to back the project financially if necessary. It is good to have the backing of Government following recent strong support from the EU.

"The major outstanding issue now blocking progress is the inter-jurisdictional regulatory decision on gas storage transportation tariffs for gas entering and leaving the store across jurisdictional boundaries. Despite several years of consideration, a joint UReg/CER decision has still not been determined.

"We now require an immediate decision from Dublin and Belfast regulators which will allow a gas storage facility anywhere on the island of Ireland to operate effectively and competitively across the Irish and UK markets. Such a decision will take a renewed level of cooperation and focus from the two regulators and given the massive security of supply benefits which a gas storage facility could bring to gas customers on the island the extra effort should be easily justified."".

For further information please contact:

InfraStrata plc

Andrew Hindle, Chief Executive Officer                                                            020 8332 1200

Stewart McGarrity, Chief Financial Officer

Financial PR - Buchanan

Richard Darby/Gabriella Clinkard/Tom Hufton                                                  020 7466 5000

Nominated Advisor and Broker - Arden Partners plc

Richard Day/Katelin Kennish                                                                         020 7614 5917

Notes to Editors:

Background on InfraStrata plc

InfraStrata is an independent petroleum exploration and gas storage company. The Company is focused on two areas in the UK, in Dorset, England and Antrim, Northern Ireland.

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

Background on Islandmagee Storage Limited (IMSL)

IMSL is an independent Northern Ireland registered company; a joint venture between InfraStrata plc (65% shareholder) and Moyle Energy Investments Limited (35% shareholder), part of the Mutual Energy group of companies. The gas storage facility at Islandmagee will have the capability to store 500 million cubic metres of natural gas.

IMSL was granted planning permission for the above ground facilities in October 2012. Applications have been submitted for three marine licences to the Department of Environment (DOE) and Northern Ireland Environment Agency. DOE are currently liaising with key stakeholders through a Marine Science Group and consulting on an outline monitoring plan for the project.

For more information about the project please visit the Islandmagee Storage Project website www.islandmageestorage.com.

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Chief Executive Officer of InfraStrata plc Andrew Hindle BSc, MSc, PhD, a Chartered Geologist with 28 years' experience, a Fellow of the Geological Society of London, and a member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Great Britain.

 

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