INFA.L Share News (INFA)

(Sharecast News) - Natural gas storage development company InfraStrata has submitted an application for a grant from the EU's Connecting Europe Facility (CEF) 2014-2020, it announced on Friday.The AIM-traded firm said the 'Grant for Studies' application was for the design and preliminary works that would be required to facilitate the proposed enablement of reverse flow of the Scotland-to-Northern Ireland gas pipeline (SNIP).Mutual Energy (MEL), through its subsidiary Premier Transmission (PTL), is the owner and operator of the SNIP and project promoter that currently held EU Project of Common Interest (PCI) status for the proposed reverse flow of the SNIP.InfraStrata's gas storage project in Islandmagee was in the same PCI group as MEL's SNIP project, as it was an enabling project for the gas storage project.The company said MEL and PTL fully endorsed it in making the independent CEF grant application, which would include studies on the PTL owned SNIP, with their support and approval.The main objective of the study grant was to perform the front-end engineering and design (FEED) study for the SNIP project, for the purposes of enhancing the gas storage project.It said the FEED study would identify technical requirements and design parameters for the SNIP project, with the scope of the study grant including the selection of FEED contractor, selection of planning and environmental consultant, FEED study pre-engineering, FEED study engineering, and planning and environmental activities that would enable the various planning applications to be submitted.The SNIP project objective was that allowing bi-directional flow between Northern Ireland and Great Britain, which was currently one-way to Northern Ireland, would increase the amount of flexibility available within the gas markets in Great Britain, Northern Ireland and the Republic of Ireland, enabling greater interconnectivity across the three neighbouring markets while supporting the achievement of national renewable and carbon reduction targets.It said the study grant works included all the studies necessary for the gas storage project to achieve maximum commercialisation, and to allow the SNIP project to enter the execution and construction phase.Under the current timeline, it was expected that InfraStrata would have at least two to four gas storage caverns in operation at Islandmagee before it would utilise the reversed SNIP.The reversal of the SNIP would be operationally required around 2025-2026, by which time it was expected that all seven caverns would be in full commercial operation.Total cost of the study grant works was estimated at €9.3m, with a maximum 50% being permissible as a direct grant to InfraStrata from the CEF, and for which the application had been made.A decision on the grant application was expected by the end of 2019.InfraStrata said it was not obliged to provide the balance of funding for the study grant, which would be considered by MEL and those involved in the SNIP project in due course at a later stage.The SNIP project would enable greater flexibility and connectivity for the gas storage project, but would not be required in any event until 2025-2026, InfraStrata confirmed."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," said InfraStrata chief executive officer John Wood."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."