16 Oct 2013 12:30
16 October 2013 For immediate release
InfraStrata plc
PCI status granted to Islandmagee Gas Storage Project
InfraStrata plc (AIM:INFA), the independent petroleum exploration and gas storage company, is pleased to announce its gas storage project under development at Islandmagee in County Antrim has been given 'Project of Common Interest' status by the European Commission. The full text of the announcement made by its subsidiary Islandmagee Storage Limited today is provided below.
"A £400million gas storage project at Islandmagee in County Antrim has just been given a major boost by the European Union. The project, which involves the creation of underground caverns in salt to store up to two months' worth of Northern Ireland's total gas requirement, has been given 'Project of Common Interest' (PCI) status by the European Commission and included on a Europe-wide list of the most important energy projects.
'Project of Common Interest' status means recognition by the European authorities that the Islandmagee gas storage project brings benefits not only to the Member State in which it is located, but to a much wider area. It means confirmation that the project is important at a European level.
PCI status is not just a well-earned accolade. PCI status means that the project must be given priority and quick passage by relevant Member States in the permitting process, and cooperation in its development. It also means the project is eligible to apply for significant financial support from the European Union - this may be in the form of direct grant or other forms of financial backing from institutions such as the European Investment Bank.
The Islandmagee project is being developed in a joint venture between lead partner, UK independent oil and gas company InfraStrata plc and local energy infrastructure company Mutual Energy."
Chief Executive of Mutual Energy, Paddy Larkin said,
"We are delighted that the outstanding benefits of this gas storage project have been recognised by way of PCI designation. This shows that the contribution this project can make to energy security of supply and system flexibility in Ireland North and South, and in Britain, has been recognised objectively by Europe. Essentially Europe is saying that this project will benefit energy consumers on these islands and national authorities should ensure that it goes ahead."
Mr Larkin continued,
"This direct message from Europe is timely as perhaps the biggest challenge facing Islandmagee Gas Storage is getting the regulatory environment right for a project that crosses a number of jurisdictions. Europe's support can only help with creating transparent, fair inter-jurisdictional regulation for gas storage. These issues were first consulted on in June 2011 and it is essential that the Regulatory Authorities in the Republic of Ireland and Northern Ireland finally bring this process to a conclusion."
Chief Executive of InfraStrata plc, Andrew Hindle said,
"It is worth noting that this is the only gas storage project in the UK to have been designated a 'Project of Common Interest'. This reflects the very advantageous location at Islandmagee which offers a uniquely favourable geology for gas storage, as well as close proximity to strong points on the gas and electricity networks. PCI status tells us that we have a very worthwhile project and that national authorities should provide all reasonable assistance in its development."
For further information please contact:
InfraStrata plc
Andrew Hindle, Chief Executive Officer 020 8332 1200
Stewart McGarrity, Chief Financial Officer
Financial PR - Buchanan
Richard Darby/Gabriella Clinkard/Tom Hufton 020 7466 5000
Nominated Advisor and Broker - Arden Partners plc
Richard Day/ Katelin Kennish 020 7614 5917
Notes to Editors:
Background on InfraStrata plc
InfraStrata is an independent petroleum exploration and gas storage company. The Company is focused on two areas in the UK, in Dorset, England and Antrim, Northern Ireland.
Further information is available on the Company's website www.infrastrata.co.uk.
Background on Islandmagee Storage Limited (IMSL)
IMSL is an independent Northern Ireland registered company; a joint venture between InfraStrata plc (65% shareholder) and Moyle Energy Investments Limited (35% shareholder), part of the Mutual Energy group of companies. The gas storage facility at Islandmagee will have the capability to store 500 million cubic metres of natural gas.
IMSL was granted planning permission for the above ground facilities in October 2012. Applications have been submitted for three marine licences to the Department of Environment (DOE) and Northern Ireland Environment Agency. DOE are currently liaising with key stakeholders through a Marine Science Group and consulting on an outline monitoring plan for the project.
For more information about the project please visit the Islandmagee Storage Project website www.islandmageestorage.com.
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Chief Executive Officer of InfraStrata plc Andrew Hindle BSc, MSc, PhD, a Chartered Geologist with 28 years' experience, a Fellow of the Geological Society of London, and a member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Great Britain.