Update on the Islandmagee Sto

RNS Number : 9435G

Infrastrata PLC

10 February 2010

 



10^th February 2010                                                                       For Immediate Release

Infrastrata plc

RNS REACH RELEASE

Update on the Islandmagee Storage Project

Infrastrata plc (AIM: INFA) and Mutual Energy Limited ("MEL"), the partners in Islandmagee Storage Limited ("IMSL"), today provide an update on the gas storage project in Northern Ireland.

IMSL is pleased to announce the appointment of Paddy Larkin as a Non-executive Director of the business. Paddy is Chief Executive Officer of MEL and has extensive experience in the energy sector in Northern Ireland having previously served in senior management positions at Moyle Interconnector and prior to that at Premier Power.

Paddy Larkin commented:

"MEL is pleased to be a partner and support the development of gas storage in Northern Ireland. Fast cycle gas storage facilities, such as the Islandmagee Storage Project, will be important to respond to the rapidly fluctuating gas supply demand for electricity generation which is expected to be required to support intermittent renewable energy generation now being developed. With increasing reliance on gas supplies sourced from outside the UK and Ireland, gas storage within this market area provides increased security of energy supplies. The project facility is being designed to store 500 million cubic metres of gas, equivalent to more than 60 days peak demand in Northern Ireland."

IMSL has completed the last of a series of in-depth surveys required to finalise the planning application for the circa £250m project at Ballylumford, Islandmagee.

The most recent survey, a detailed geophysical assessment of the seabed around the proposed outfall diffuser, had initially been due to take place before the end of 2009 but was postponed owing to the poor weather conditions during the winter causing a delay to the completion of the Environmental Impact Assessment ("EIA"). The Planning Application, Environmental Impact Statement and the Hazardous Substances Consent Application are now expected to be submitted to the Strategic Projects Unit of the Northern Ireland Planning Service during March 2010.

Speaking about their important environmental appraisal work, Andrew Hindle, Managing Director of IMSL said:

"Over the past two years our experienced environmental consultants have completed a wide range of specialist surveys in order to compile a full and detailed EIA for this project. These assessments have examined the terrestrial and marine ecology, geology and hydrology in the area and have studied the level of potential impact on residents in relation to noise, visual impact and traffic. The project has been designed to ensure that impacts from construction are minimised and that the modest surface facilities are sited sensibly and landscaped where appropriate."

For further information please contact:

Infrastrata plc

Andrew Hindle, Chief Executive Officer                                                         020 8332 1200

Craig Gouws, Chief Financial Officer

Mutual Energy Limited

Paddy Larkin, Chief Executive Officer                                                           028 9043 7580

Jet PR (IMSL Public Relations Consultant)                                                         

Jacqui Thompson                                                                                           07803 722322

Notes to Editors:

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 Infrastrata plc ("INFA")

INFA'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 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 Independents in Europe developing gas storage infrastructure. Further information is available on INFA's website www.infrastrata.co.uk.

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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