INFA.L Regulatory News (INFA)

15 Jul 2009 07:00



Portland Gas

Solicitors appointed to the Portland Project

The Directors of Portland Gas plc (AIM: PTG) ("the Company" or "Portland Gas") today announce that Field Fisher Waterhouse LLP ("FFW") are being appointed as solicitors to Portland Gas Holdings Limited ("project company") which owns the Portland Project.

Walter Roberts, Legal and Commercial Director of Portland Gas commented: 

"In preparing for the new funding process to be announced shortly, we have concluded that the project company's solicitors will need to be independent of Portland Gas plc and that all investors in the project, including Portland Gas plc, will need to be in the same relationship, so far as possible, with the project company. FFW will therefore be acting for all the future shareholders of the project company as a group. Norton Rose LLP will continue to act for Portland Gas plc."

"We are very pleased that FFW have agreed to act for the project company. They have a wealth of extremely relevant experience from projects which have been successfully structured in almost identical ways to the structure which is now being proposed for the Portland Project. " 

In order that the "Portland Gas" name can remain with the Portland Project where it is very well established in Dorset, the Directors intend to seek approval at the next Annual General Meeting of the Company, scheduled for December 2009, to change the name of Portland Gas plc to "Infrastrata plc". The project company, Portland Gas Holdings Limited, would then be renamed to "Portland Gas Limited".

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Notes to Editors:

Background on Portland Gas plc

Portland Gas' business is focused on the development of two gas storage projects in the United Kingdom at Portland, Dorset and at Islandmagee, County Antrim, Northern Ireland. The two projects could between them provide over 10% of the total UK and Ireland peak daily demand in the latter part of the next decade. The Company is also developing new projects in mainland Europe initially focussing on Germany and Spain. The Company is one of only a few in Europe focused specifically on gas storage development, a sector with significant growth potential in Europe over the coming decades.

Background on Field Fisher Waterhouse LLP

Field Fisher Waterhouse LLP ("FFW") is a substantial European law firm with over 130 partners and over 300 other lawyers and offices in London, Paris, Brussels, Hamburg and Manchester and associated offices in a number of Spanish and Italian cities.

The firm is used to, and has extensive experience of, advising in relation to major projects and joint venture structures, both in the energy sector and in other fields. In particular FFW acted in relation to the UKߛContinent Gas Interconnector project from its inception in the early 1990s, providing independent advice to the project company in establishing the structure of, and documentation for, the project in conjunction with the project participants. FFW continue to act for Interconnector (UK) Limited today. FFW have much other relevant experience, including in relation to gas storage projects.

Portland Project

At 1,000 million cubic metres ("mcm") or 35 billion cubic feet ("bcf") of working gas, it will be the largest onshore gas storage facility in the UK. Planning permission was granted by Dorset County Council in May 2008 and Pipeline Construction Authorisation was granted by the BERR (now known as the Department of Energy and Climate Change) in July 2008. The gas storage facility is designed to inject or withdraw gas at 20mcm per day. On peak demand days the withdrawal rate could be boosted to 30mcm per day. The current estimate of total development cost for the project is £456m. The project will use brine compensation technology and will not require cushion gas. Construction of the project will commence on 31st July 2009.

Islandmagee Storage Project

The proposed 500mcm (18bcf) facility will be the largest on the island of Ireland and make a significant contribution to the security of gas supplies. Portland Gas plc has a 65% interest in the project. Its partner in the project is a subsidiary of Northern Ireland Energy Holdings Limited, the owner of the Scotland to Northern Ireland gas pipeline. The facility is being designed to inject gas at 12mcm and withdraw gas at 22mcm per day. The cost of construction has been estimated at £229m, including cushion gas. A successful public exhibition was held on Islandmagee in June 2009 and work is continuing towards the submission of a planning application before the end of 2009.

Further information is available on the Company's website www.portland-gas.com.