(Alliance News) - Infrastrata PLC on Friday said it has applied for an EU front-end engineering and design study grant to cover design and preliminary works to allow reverse flow of the Scotland to Northern Ireland gas pipeline.
Mutual Energy Ltd owns and operates the pipeline through its Premier Transmission Ltd subsidiary and currently holds EU Project of Common Interest status for proposed reverse flow of the pipeline.
Infrastrata's Islandmagee gas storage project in Northern Ireland is in the same Project of Common Interest group as Mutual Energy's pipeline project. Mutual Energy fully endorses the independent grant application.
The aim of the study grant is to perform a front front-end engineering and design study of the Scotland to Northern Ireland gas pipeline in order to enhance the Islandmagee gas storage project. This scope of the grant includes selecting a contractor for the study, as well as a planning and environmental consultant.
Allowing bi-directional flow between Northern Ireland and Great Britain, which is currently only one-way to Northern Ireland, is hoped to increase flexibility in the gas markets and make Great Britain, Northern Ireland, and the Republic of Ireland more interconnected.
The cost of the study grant work is estimated at EUR9.3 million, with a maximum of 50% permissible as a direct grant to Infrastrata from the EU's Connecting Europe Facility.
Infrastrata Chief Executive John Wood said: "We are delighted to have been working with Mutual Energy and Premier Transmission over an extended period and are happy to have written and submitted the grant application to the EU. We look forward to working in consultation with Mutual Energy and Premier Transmission as this work stream develops, which we feel is worthy of support from the Connecting Europe Facility".
Shares in Infrastrata were flat at 0.86 pence on Friday afternoon.
