We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Opportunity knocks?
Hughie Green, Bob Monkhouse, Les Dawson and John Wood?
Agree,spud. Recent developments in this space are like manna from Heaven for Infa and its prospective gas trading partner. Judging by the number of players wanting to get close up to Infa, industry players are very well aware of the opportunity here.
I've just noticed the full article didn't copy and paste O&W!
The final paragraph was the interesting one for me
A quote from Marco Alverà , boss of Snam, Europe's largest operator of gas networks
"If you don’t set rules and policies and incentives it’s far more fragile,” says Alverà. “The UK needn’t employ a heavy-handed interventionist approach. But light-touch, inexpensive regulation is needed for gas."
I agree infa can't be the answer to all of this but we are positioned in a very interesting place. ........
The recent 40 mill grant application, if successful, is the "cherry on the cake"
Yes an investor presentation and Q&A on the 5th
I know a few who are attending
Hi Mitch. I took that from the Rns dated 15.10.2018 ‘The application has been submitted for a grant intervention rate of 33.14%. This equates to a grant amount of circa £40 million towards the total construction cost of the Project's first phase of an initial two storage caverns.’
All this talk of potential supply shortage in the UK domestic energy market is concerning, but Infa cannot seriously be a solution as things stand now. The project is 3 years away from completion at the very least. But more importantly, when fully built out IslandMagee on the published plans will account for a very small share of total energy available peak supply. It's main purpose for a gas trader is to exploit short term price fluctuations, not medium term strategic storage. Unless of course, Infa has a backer that is willing to finance at least three IslandMagees in the next 3-10 years. Then Infa will become an industry force to reckon with.
I believe subsidies to ageing UK coal/gas plants and inefficient renewables are under scrutiny. The UK govt hope to get away with it and not have to fork out for new infrastructure. Here's to good govt!
Bradders and Spud --yet again you both hit the nail on the spot---- The Times highlighted this one also -am amazed that this snippet did not hit the front pages in this week of "Brexit Bullying" etc and political turmoil -It really is a hum dinger of a news item both from the perspective of Brussels having control and the myopia of this pathetic government who have been totally distracted and sidelined by Brexit.It has huge relevance to our wonderful project !
s,” says a fresh report from energy consultancy Wood Mackenzie.
“This has come at a time when the UK is about to leave the EU, is closing down all of its coal-fired power plants and indigenous production is continuing to fall. This poses questions about future security of gas supply.”
–– ADVERTISEMENT ––
The immediate “standstill period” on the capacity market prevents the Government from holding any capacity auctions or making any payments to power generators which have already won contracts.
A permanent closure of the scheme could trigger an exodus of existing coal and gas plants totalling 20GW “which could create serious security-of-supply issues,” according to analysts at brokerage Jefferies.
The move threatens a return of price spikes over the winter, which could be made worse by growing fears over access to gas supplies. Behind closed doors, the industry is calling on ministers to prioritise policies which can help to keep a lid on prices.
The growing reliance on foreign sources for gas does little to calm jitters that the UK could be held to ransom amid a winter gas supply crisis. It has just 1.5bn cubic meters of gas storage capacity, or 2pc of the total gas system, following the closure of the Rough gas storage facility in 2017.
This means that without a constant stream of imports, Britain’s gas would last just seven days based on current demand from homes and businesses, which means that during the cold, dark days of winter, stores would run dry far quicker.
Meanwhile Germany, France and Italy are equipped to cover between 25pc and 35pc of total needs from storage facilities if necessary.
The laissez-faire approach to stockpiling is, in part, a hangover from the heady North Sea heyday when gas was cheap, plentiful and on the nation’s doorstep. However, the North Sea’s steady decline is taking place against a backdrop of quietly rising demand.
An unintended consequence of Britain’s turn away from coal power is a growing reliance on gas-fired electricity. If gas market prices climbed too high in the past, generators would switch on coal plants instead.
gas flame
“It is clear that the UK is reliant on flexible gas supply sources from the continent to support its market during periods of extreme weather conditions” CREDIT: YUI MOK/PA
Last year gas accounted for 39.7pc of the UK’s electricity, while coal accounted for only 6.7pc. This winter, a bitterly cold, windless night will rely almost entirely on gas plants.
Yet ministers are defiant in the face of growing concern over energy supplies. Business Secretary Greg Clark defended the Government’s hands-off approach to gas security.
“The UK has consistently enjoyed a high level of gas security over the last decade. This is the upbeat lesson that I take from last winter’s Beast from the East,” he says.
The cold snap drove Britain’s demand for gas up by a third from usual levels in early March, causing market prices to spiral sixfold to 12-year
https://www.telegraph.co.uk/business/2018/11/17/winter-coming-britains-energy-policies
Jillian Ambrose, energy editor
17 NOVEMBER 2018 • 1:46PM
Winter has come early for the Government’s energy policy. Although temperatures have only just begun to dip, certainty over whether the UK is prepared for the cold has already plunged.
In the space of one week, major policies affecting Britain’s gas and electricity supplies have been thrown into doubt. A European court ruling has brought a cornerstone scheme designed to keep the lights on to an immediate standstill. Meanwhile, Brexit fears have reignited concerns over Britain’s decision to forego investment in gas storage facilities.
“It is clear that the UK is reliant on flexible gas supply sources from the continent to support its market during periods of extreme weather conditions,” says a fresh report from energy consultancy Wood Mackenzie.
Did anyone notice the CEO kept talking about the future of the company? He's got something in the works by the sound of it. Expansion of the current project? Or additional projects that need to go through FEED?
That is simplifying it a lot by the way! Lots of potential to surprise everyone imo
Jimmy, roughly 2/3 of project costs are covered by the UK government guarantee scheme (we have prequalified) So basically debt finance. The balance will be funded by project level equity (not dilutive at plc level) We currently own 100% of Islandmagee energy so will give a share up in exchange for the 1/3 of build costs
It also has PCI status.
The grant application is for £40m of EU funding.
Am I right in thinking the UK or the EU will fund a large proportion of the project because it's an essential infrastructure project? Which means INFA would only need to secure funding for a small proportion of the project?
eu grant shouldnt be until february so it must be project financing imo
Does anyone know what the CEO was hinting at in the interview when he said equity news? Is that project financing or the EU grant? He said that news would be in the next 10 days along with FEED.
Lovely to wake up and see that rise. Massive volume which is good news. Sellers selling and new buyers arriving who will want a return on there investment. Plenty of news in the pipeline to keep up the momentum. Full steam ahead, this is only the start..
Favourable press coverage this weekend will provide support for further progress on Monday, otherwise I suspect sp will slip back which then provides further buying opportunity!
Cracking day. Took some in the 0.5’s admittedly not enough. One to hold now
I've been on the road all afternoon so pleasantly surprised to see the sp action and close. It should remain strong all the way to the Dec 5th presentation and beyond, if JW impresses the supportive crowd. There will be plenty of news in between to support a firming share price and valuation, which is still stupidly low. I feel the stars are aligning for Infa and the underlying industry metrics, economically, politically and strategically.
I’m feeling mildly excited 😜