21 Oct 2019 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
21 October 2019
InfraStrata plc
("InfraStrata" or the "Company")
EXTENSION OF EXCLUSIVITY AGREEMENT FOR A FLOATING STORAGE AND REGASIFICATION UNIT OFFSHORE BARROW-IN-FURNESS IN THE UNITED KINGDOM
InfraStrata plc (AIM: INFA), the UK quoted company focused on strategic infrastructure projects and physical asset life-cycle management, is pleased to announce that it has extended its period of exclusivity under the Exclusivity Agreement ("Agreement") that it entered into with Meridian Holdings Co. ("Promoter"), a Cayman Islands company, as announced on 09 July 2019, to facilitate the development and an acquisition of the Promoter's Floating Storage Regasification and Reloading Unit Project ("FSRU Project") in the United Kingdom. Under the terms of the Agreement, the Company now has extended its exclusivity till 08 January 2020.
Background
The FSRU Project involves developing a floating LNG (liquified natural gas) receiving port offshore Barrow-in-Furness, Cumbria, in northwest England, and is designed to deliver re-gasified volumes of natural gas directly into the UK market via its own National Transmission System interconnection at Barrow-in-Furness.
At a projected capacity of approximately 5 million tonnes per annum, the FSRU Project will add to the UK's security of gas supply, help balance the gas network on peak demand days and provide its clients with a high level of optionality between storing LNG, regasifying LNG and sending it to the National Grid and storing regasified LNG for future withdrawals from underground gas storage.
Due diligence
Preliminary due diligence conducted by the Company on the FSRU Project thus far has yielded positive results. The extended period of exclusivity will now enable the Company to conduct a more detailed technical, commercial and regulatory assessment of the FSRU project and determine key parameters.
Additionally, discussions have commenced with leading global liquefied LNG terminal (both onshore and offshore) construction companies based in South Korea and Japan who have expressed interest in partnering with the Company to construct the FSRU Project.
Key to any project that the Company decides to add to its portfolio is the ability to monetise it as soon as possible and underpin the project's economics with baseload revenues. To that extent, the Company has had discussions with leading global trading houses who have expressed interest in entering into long term capacity offtake agreements with a view to monetising their growing LNG portfolio in the highly liquid UK wholesale gas market.
John Wood, Interim Chairman and CEO of InfraStrata, said:
"We are pleased to have extended the exclusivity on the FSRU project till 08 January 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. Subject to technical and commercial feasibility, we believe that the FSRU Project will form an important part of the Company's portfolio of projects that it seeks to develop during the next 5 years and operate post-construction."
**ENDS**
For further information, please visit www.infrastrataplc.com or contact:
InfraStrata plc John Wood, Chief Executive & Interim Chairman
| c/o Newgate Communications +44 (0)20 3735 8825 |
Allenby Capital Limited (AIM Nominated Adviser & Broker) Jeremy Porter / Liz Kirchner
| +44 (0)20 3328 5656 |
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Newgate Communications (PR) Elisabeth Cowell/ Ian Silvera | +44 (0)20 3757 6880 |
Notes to editors:
InfraStrata is a London Stock Exchange-listed group focused on strategic infrastructure projects and physical asset life-cycle management.
The rapid development of the 100% owned Islandmagee Gas Storage Project is a core workstream for InfraStrata. It is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Ireland economy as a whole when complete. Given that the Committee on Climate Change has advised that the UK will still need a significant quantity of natural gas by 2050 - about 70% of today's consumption - the market opportunity for this project is compelling. It is the only gas storage project in North West Europe to be awarded 'Project of Common Interest' status by the European Union, confirming its strategic importance to the entire continent.
Mindful of the fact that safe, secure and flexible sources of energy are needed for a sustainable future, InfraStrata is focused on providing investors with exposure to a growing portfolio of UK, European and international energy infrastructure projects. With this in mind, the Company's highly experienced team is focused on acquiring, developing and commercialising innovative infrastructure projects around the world.