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Don't forget....the £1.4M is under guarantee and will soon be in the coffers.
Irish Times Jan 7th 2019
“It is now recognised that energy security in Northern Ireland, and the UK as a whole, is an issue that politicians can no longer ignore.Gas storage at Islandmagee is good for Northern Ireland, good for the UK and good for the EU. We still hold Project of Common Interest status with the EU, and we have applied for further grant funding. Brexit will not affect these initiatives as the UK government has confirmed that it will honour any EU grants previously awarded,”
However, IMO Brexit won't affect the status of PCI....the common interest being economically stored gas for 'Southern' Ireland.
GLA!
Welcome,Leesadee,to this forum.If you are indeed a N.I. or even and Isle Magee resident and not really in favour of the project,it is useful to have your views aired so as to help balance opinions.Perhaps we can have some local residents who support us on the board too.
Usually weekends are quiet here --not this weekend though ..which is good !
Now I may be totally mistaken (and I apologise up front if so) but I thought that dualling of the SNIP was only an issue for a possible increase in size of more than 7 caverns so currently there is unlikely to be a call on N.i. consumers having to bear any cost of such .
The beauty of this project is it's proximity to the SNIP .The SNIP is connected to Gas pipeline network in the Republic of Ireland.The SNIP supplies all of N.I's gas and about 90% of Ireland's gas imports.The balance is supplied by local production ( now declining ) and the two Interconnectors that you have referred to ...so with the significant increase in the roll out of the gas network to the West of Ireland now being planned AND implemented,there is a demand/need for storage both for security of supply and satisfaction of demand -
Using 2-7 caverns as at presently planned ..
Extending the number of caverns and use of the Lough as a complete Energy Hub are Long Term.
In a tightening market there always will be spot shortages .Rough has gone and Groningen Gas Field is just about finished.Hence the investment potential.
We are at the end of the SNIP and there is a sure need for security of supply to the whole Island to have the Gas in store.Hence the reason for the Grants ..after all it is deemed to be a "Project of Common Interest" .
Gas Cookers and Boilers are selling well in County Sligo ,I understand !!
Morning whatamess, the finalising of the twinning of the Moffat Interconnector (IC1 & now IC2) is recent, so previous grant rounds years ago did help with some initial funding for exploratory works for the storage, but the situation has now changed. Twinning of the Moffat was also a PCI project, so sometimes only 1 project in an area is required for security of supply. Also projects put themselves forward for PCI status, not Governments, but EU asks for Member State approval, & as said below what Gov would turn down chance of EU cash? Member States / Regulators generally use the term "does not object" to projects being put forward, which is not quite the same as backing a project...
Won't be long now before we receive approximately £1.4 Million.
9th May RNS....'The Company has now submitted the final EU application for the FEED study that was completed last year and the sum of EUR1.6 million is expected to be received in the next 8 weeks from the EU.'
Also all land purchases should complete this month.....''All land purchases and easements have been completed apart from purchasing plots 1 and 1.1, which were delayed after a request from the land owner to provide a further extension. The cost of these lots is agreed and they are due to complete by the end of June.'
Things are moving along.......'We are extremely pleased with the rate of progress of all the negotiations that are ongoing and are confident of reaching a conclusion on our offtake negotiations in the near future, which will in turn drive the other workstreams in the Project ".
News of the offtake should propel the SP into a whole new ballpark !
No worries Tony, & we will indeed, have a nice evening :)
That's interesting thanks. No need for NI gas to ROI, unless it's cheaper from storage. We'll see.
The below from the UK National Risk Assessment on Security of Gas Supply Nov '18: "South North Pipeline: Gas can flow from Ireland to Northern Ireland via the South North Pipeline (SNP). Reverse flow from North to South would provide another supply route into the Republic of Ireland, but this would be the same gas that had already come through IC1 and IC2, which flow directly to Ireland from GB (as these interconnectors also spur off to supply 100% of Northern Ireland’s gas). There is currently therefore no demand for gas to flow through SNP from Northern Ireland to Ireland." ..
It's still only one way Tony, South to North from Ireland to Northern Ireland ...
"The South-North gas pipeline runs from Gormanston, in County Meath, to Ballyclare, Co. Antrim, where it links into the North-West pipeline. This pipeline created and all-island gas transmission network, connecting the grids north and south for the first time." sorry, forgot it links with the NW https://www.gasnetworks.ie/corporate/gas-regulation/northern-ireland/
I can see why you would think that though Tony, that isn't clear on the gas network maps I don't think...
Hi Tony, that's through the SN Pipeline, stands for South North, for a reason, only goes the one way & no plans for reverse flow. No gas travels from NI to Ireland...
Not necessary, gas doesn't have to go from IM to UK and then to ROI. There is a north-south gas pipeline from Gormanston (just north of Dublin) to Ballyclare, just round the corner from you.
Hi Tony, both projects are on 3rd PCI List, we'll see if they stay on for the 4th, energy needs & circumstances have changed greatly since 2013. Problem with the gas serving Ireland... Any gas in NI storage would come from the UK, & to get to Ireland from NI would have to go back across to UK, (if SNIP reversed) then back across to Ireland through the Moffat IC1 / IC2 interconnectors so it is a pretty pointless exercise, may as well have gone straight to Ireland from UK... and as it's got the IC1 & IC2 connectors, gas security in Ireland is fine... re Gov support, projects put themselves forward for the PCI List, with the agreement of the member state, because they may qualify for large financial grants. What Gov wouldn't look for EU money, doesn't confirm a need...
The benefits of the storage are to extend to the Republic too, not just NI. It has the support of their Govt; thats why the PCI status from the Innovation and Networks Executive Agency of the European Union have given grants to date. Another view to consider. Many old infa RNS' allude to this, as does website today.
Hi whatamess, my main enviro concerns atm are saturated brine discharge, & end of life. I've been researching salt caverns since 2015. Gas is cleaner than coal, but still a fossil fuel so not a fan of building new gas infrastructure, esp if surplus to requirements. Don't think your average person from NI will like funding gas (infrastructure) for all UK if it is indeed intended to be funded by consumer, esp if gas profits appear to be going to a private business (to you as a shareholder perhaps) so doubt I'll be alone in being a bit miffed, esp as the evidence suggests it's not needed... Here's the link to Claire Perrys letter from Feb this year, following on from BEIS (Business, Energy and Industrial Strategy Committee) Gas Storage Inquiry at Westminster in Oct '18 https://www.parliament.uk/documents/commons-committees/business-energy-and-industrial-strategy/Correspondence/Claire-Perry-Gas-Storage.pdf Have a nice evening :)
Hi whatamess, firstly I live in NI & wouldn't wish to help fund this project, as there are environmental risks & a need for this gas storage has not been proven. We have 3 gas interconnectors & the N-1 equation for UK is 120%, & including Ireland is 137%, so we're way above what is required in the event of the single most important gas infrastructure failing in a "once in 50year" weather event. The Min of State for Energy for UK Claire Perry also recently stated that gas storage could cause an increase in gas prices, so can't be justified on "cheaper gas for all" grounds. It would also seem a bit cheeky for the NI consumer to be possibly funding any gas for mainland UK market, as 7 caverns would way exceed any gas needs for NI/Ireland. This takes the project beyond private enterprise & into the public domain, so questions need answered by Mutual Energy as to who will pay the initial €60M & €1-2M annual costs.
Hi Dawski, I'm not sure the offtaker would be paying for this, as the SNIP isn't infa's asset, & the Mutual Energy rep at Regional Gas Meeting in Brussels said "the question will always be who is going to pay for this, & I don't have the answer, that is going to be a question for the regulator..." The infa rep made a presentation after Mutual, discussed FID but at no point mentioned any funding coming from infa for reverse flow on the SNIP. That's where concerns come in, that costs for gas to mainland UK could be passed on to the NI consumer, otherwise why mention the regulator?
I do recall that the cost of dualling SNIP has been fully allowed for in discussions with the proposed Offtakers and others so that element should not be an issue.I remain very positive about this necessary project for the Island of Ireland and regard June as a pivotal month indeed.There are still some known unknowns still and the BOD are working hard to resolve these.
Thank you :-) hopefully a bit of balance will help investors make informed choices...
Your views are welcomed :). Too much positive spin on an investment is toxic so it's nice to have some perspective!
Hi Dan, yip I am, using my own name, not trying to mislead anyone :-) Also not here to be contentious, will only post facts, some informed opinion, and any links to support info. Thanks for the polite welcome, appreciated.
Hi Leesadee, I believe you are one of the locals on Islandmagee. Good to have you on board!
;-) lol... Absolutely, of course they can... but it's still agreements with caveats, not a given, so can all go pear shaped very quickly, so still a risky investment. SNIP reverse flow is def an issue since the uncertainty of how it could be funded was actually raised by Mutual Energy themselves in Brussels... €60M a lot of extra cash to raise, plus €1M-€2M p/a running costs...
Off take agreements can be signed without the marine licence in place - it will obviously be a caveat of “subject to obtaining”. Happens all the time and deals and agreements are signed all the time with “subject to FID” or “subject to contract” etc etc or as you like to keep going on about it “subject to SNIP reverse flow” ;-)
Won't be June or July imo, updated enviro docs needed for marine license not even released for public consultation yet, maybe not even with DAERA, then at least 6 weeks for submissions, then more qs & consultations. Nothing happening anytime soon imo