Aim-listed gas storage developer InfraStrata have announced an Offtake Agreement with Vitol for all the storage capacity at their planned Islandmagee storage facility in Northern Ireland.The Term Sheet is binding and agrees to take capacity from all 7 caverns which are to built, and for 12 years.
Vitol is one of the world's largest privately owned energy trading bsuiness with 40 offices around the world. It trades over 7 million barrels of crude oil and products every day. In an exclusive interview with London South East, CEO John Wood described the deal as 'transformational - it goes a long way to de-risking the the business and means we are now concentrating on the equity raising element, the next step for us'.
'The timeline we envisage is for construction of the caverns to start late 2019, with gas injection fourth quarter 2022, full commercial operations planned 2023/24. Revenues of 50 to 65M pounds are anticipated annually, with 2 billion pounds over the project's lifetime.'