(Alliance News) - InfraStrata PLC said Monday it has extended its period of exclusivity over the agreement with Meridian Holdings Co for the development and acquisition of a floating storage regasification and reloading unit project in the UK.
The company has extended exclusivity until January 08, 2020. Shares in the natural gas storage provider were 10% lower at 0.45 pence on Tuesday in London.
In July, InfraStrata agreed to a period of conducting due diligence to assess the feasibility of working on a UK floating storage project.
The agreement was signed with Meridian, which owns such a project in Barrow-on-Furness, Cumbria. The project is designed to deliver re-gasified volumes of natural gas to the UK market.
InfraStrata originally had three months of exclusivity to look into the feasibility of the project.
Preliminary due diligence conducted by the company so far on the project has yielded positive results. However, InfraStrata said it believes an extended period will allow it to conduct a more technical, commercial and regulatory assessment of the project.
In addition, the company has started discussions with global liquefied natural gas terminal construction firms based in South Korea and Japan, who have expressed interest in partnering with InfraStrata over the project.
"We are pleased to have extended the exclusivity on the FSRU project till January 08, 2020. This will give us the ability to take a comprehensive view on the project and determine next steps that we will take at the end of the exclusivity period. We are very encouraged by the level of international interest expressed for the FSRU Project, both on the construction and the offtake sides," said Interim Chair & CEO John Wood.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
