Portland Project Funding Proc

RNS Number : 5306F

Portland Gas plc

10 October 2008

 



Immediate Release

10 October 2008

Portland Gas plc

Portland Project Funding Process Update

The Directors of Portland Gas plc (AIM: PTG) ('the Company' or 'Portland Gas') the independent gas storage company would like to provide an update on the funding process for the Portland Project.

The Company's funding discussions are progressing and potential investment terms have been discussed with a range of parties. Terms are currently being standardised and presented to prospective Joint Venture partners, which include major utilities and integrated oil and gas companies. 

The next stage of the process will be for the parties to agree the terms of a non-binding Memorandum of Understanding ('MOU') containing the proposed commercial terms for the development of the Portland Project. It is anticipated that this process will be advanced significantly during the fourth quarter of 2008. Following the signing of the MOU's there will follow a period of multilateral negotiations to finalise the detailed legal documentation for the Joint Venture. Completion of the funding process will follow the conclusion of these negotiations.

The Company is pleased to announce that CB&I have been awarded the first phase of the EPC contract for the construction of the facilities. The Portland Gas project manager, Jay Tanna, and his team are now based in the offices of CB&I in Paddington, London.

Commenting on the Portland Project, Andrew Hindle, the CEO of Portland Gas, said: 

'We are pleased to be entering the next stage of the project funding process in which the Joint Venture partners are able to join the project under the same terms and collectively agree the legal framework. The Company is progressing with the engineering design and site preparation work under the management of Jay Tanna who joined the Company in June. Jay is supported by a wide range of consultant engineers from organisations who have had a long association with the project. The start of the facilities engineering by CB&I is an exciting stage in the development of the Portland Project.'

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, for which planning permission was granted by Dorset County Council in May 2008 and Pipeline Construction Authorisation was granted by the Department of Business Enterprise and Regulatory Reform in July 2008. The second project is at Larne Lough in Northern Ireland and the Company is progressing further new venture projects in Europe. 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 Jay Tanna 

Jay Tanna joined Portland Gas as Project Manager in June 2008. He graduated with a mechanical engineering degree from London University in 1964. He became a chartered engineer in the early 1970s, and has also obtained additional qualifications in chemical engineering. He is now a Fellow of the Institution of Mechanical Engineers as well as a Fellow of the Institution of Chemical Engineers.

Jay has spent his entire career (over 40 years) in the management of the design, engineering and construction of onshore and offshore oil, gas and petrochemical installations worldwide, and also has some experience of nuclear installations. Jay's experience includes managing the construction of Rough AD / AP topsides and jackets, Kalimantan fertilizer complex (Indonesia), Carbon Black plant (Nigeria) and Vinyl Chloride Plant (Newton Ayecliffe UK).

He has worked for contractors as well as owners, and has acquired experience in many countries including Eastern Europe, the Far East, North and South America and Western Europe.

Background on CB&I 

CB&I is one of the world's leading engineering, procurement and construction companies, combining proven process technology with global EPC capabilities to deliver comprehensive solutions to customers in the energy and natural resource industries.

With more than 70 proprietary licensed technologies and 1,500 patents and patent applications, CB&I is uniquely positioned to take projects from conceptual design, through technology licensing, engineering and construction to final commissioning.

Drawing upon the expertise of approximately 17,000 employees in more than 80 locations, CB&I safely and reliably executes projects worldwide. CB&I's 2007 revenues exceeded $4 billion.

 

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