Pipeline Construction Authori

RNS Number : 1494A

Portland Gas plc

30 July 2008

 



Immediate Release

30 July 2008

Portland Gas plc 

Pipeline Construction Authorisation from BERR

The Directors of Portland Gas plc (AIM: PTG) ('the Company' or 'Portland Gas') are pleased to announce that its wholly owned subsidiary, Portland Gas Storage Limited, has received authorisation from the Department for Business, Enterprise and Regulatory Reform ('BERR', formerly the DTI) to construct a 37 kilometre gas pipeline to connect the underground salt cavern gas storage facility at Portland, Dorset, to the National Transmission System. Permission was also granted for a 16 kilometre brine pipeline between Stafford Farm, east of Dorchester and Portland.

Dorset County Council granted planning permission at a meeting of the planning committee on 16 May 2008 for the permanent facilities and the temporary storage areas for the pipeline during construction. 

Commenting on the authorisation from BERR, Andrew Hindle, the CEO of Portland Gas, said: 

'This authorisation from BERR is another milestone for the Portland gas storage project. The project on completion will be the largest gas storage facility onshore UK and will make a significant contribution to the security of energy supplies for the country.

'On completing financing arrangements for the project, we intend to commence the award of construction contracts during Q4 2008. In the meantime Portland Gas is undertaking long-lead design work to keep the project timing on track for initial operation in 2011 and full project completion by 2015.'

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 

Portland Gas' business focuses on the development of gas storage projects and associated infrastructure in the United Kingdom and internationally. It currently has two projects in its portfolio, the first on Portland, Dorset, and the second at Larne Lough in Northern Ireland. Further information is available on the Company's website www.portland-gas.com. The company is one of only a few in Europe focused specifically on gas storage development, a sector with significant growth potential given the projected significant increase in demand for gas in Europe over the coming decades.

Background on the Portland Project

This new facility will be the largest onshore gas storage facility in the United Kingdom, and will provide up to 5% of UK demand for gas on winter days. Gas operations are planned to commence in 2011, with full storage volumes available in 2015. The facility will be connected to the National Transmission System ('NTS') at Mappowder in North Dorset by a 37 kilometer pipeline. 

The Project will consist of 14 salt caverns at a depth of 2,400 metres, with a total storage capacity of 1,000 million cubic metres. The caverns will be maintained at a constant pressure by brine compensation. The rate of injection or withdrawal of gas will be 20 million cubic metres per day, enabling the whole storage facility to be filled or emptied at a constant rate in 50 days. The caverns will be constructed by leaching via boreholes - a technology that has been tried and tested internationally. The brine will be stored in a Sherwood Sandstone aquifer at Stafford Farm, and will be transferred to and from Portland by an 18 kilometre pipeline.

The Company's financial advisers, NM Rothschild & Sons, are managing a formal process with potential joint venture partners who have already expressed interest in participating in the project. 

 

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