(Alliance News) - InfraStrata PLC in 2020 will focus on generating revenue from both new facilities and existing developments, like the Islandmagee gas storage project located in Northern Ireland, the natural gas provider said on Thursday.
The company is looking for gas storage opportunities in mainland UK to supplement its similar work done in the Northern Ireland project. The firm is also looking for revenue generating opportunities from facilities in the European Union as well as projects that would allow the importing of liquefied natural gas to the UK.
InfraStrata say any of these potential new projects are still being discussed or are in the due diligence stage.
The company said it will initially fund the costs of any new projects by using part of the EUR1.6 million grant that it will receive from the EU later in 2019, though it does predict that the developments will generate revenue.
InfraStrata also anticipates funds from new investors in Islandmagee project once a final investment decision has been reached for the project, expected by the end of 2019.
Chief Executive John Wood said: "We have had very strong interest in the above-mentioned projects, and we believe that we are ideally placed to work with our partners to put these projects together."
"These projects will be a key strategic fit with our existing flagship Islandmagee gas storage project which will continue to receive the attention it requires to ensure it is brought online and in keeping with the commitments that we have made in our recent offtake term sheet with Vitol SA."
Last month, InfraStrata announced that it signed a binding term sheet with Vitol before agreeing to a 12-year offtake pact with the energy and commodities firm. This would allow Vitol exclusive access to the Islandmagee facility one it is completed and all seven gas storage caverns are operational.
InfraStrata expect annual revenue of between GBP50 million and GBP65 million at project level, not including maintenance and costs, when the facility is fully-functional.
Shares in InfraStrata were up 2.1% at 0.62 pence each in London on Thursday afternoon.
