18 Jun 2009 07:00
| For Immediate Release | 18 June 2009 |
Portland Gas plc
PRESS RELEASE
Date set for public exhibition of proposals for gas storage project
Portland Gas plc ("Portland Gas") and Northern Ireland Energy Holdings ("NIEH"), the partners in Islandmagee Storage Limited (name recently changed from Portland Gas NI Limited) today announces that they will be holding a two-day public exhibition to present information and invite feedback on a series of proposals for the multi-million pound gas storage scheme on Islandmagee.
The exhibition, which will run from 2pm - 8pm on Friday 26th June and from 10am - 4pm on Saturday 27th June in 2nd Islandmagee Presbyterian Church Hall, Lunnan Road, Islandmagee, will provide a platform for the Islandmagee Storage Project team to gather any views and ideas that key stakeholders and members of the public may have relating to the options being considered at this stage.
Dr Andrew Hindle, CEO of Portland Gas commented:
"Our seismic survey, undertaken in 2007, has given us an excellent picture of the geological structure of the area confirming that the conditions deep below Larne Lough, at a depth of around 1400 metres, are ideal for storing natural gas.
"Over the last few months our technical experts have been advancing designs for the storage caverns and further progress has been made on the Environmental Impact Assessment relating to the proposed project. Information on all of this and more will be on display during our two-day exhibition and we will welcome any feedback members of the public may have on the current proposals."
Commenting on the importance of the project for Northern Ireland, Executive Director of NIEH William Cargo said:
"The island of Ireland is increasingly dependant on natural gas for its energy supplies. This gas storage project will help to ensure the security of future gas supplies and have a positive influence on seasonal price fluctuations."
This is the first of two public exhibitions that Islandmagee Storage Limited is intending to hold before submitting a planning application later this year. The follow up event will be held in September to consult on preferred designs ahead of the submission of a planning application which is anticipated before year end.
For further information please contact:
Portland Gas plc
| Andrew Hindle, Chief Executive Officer Craig Gouws, Chief Financial Officer | 020 8332 1200 |
| Northern Ireland Energy Holdings William Cargo, Executive Director | 028 9043 7580 |
| PR - Watershed Sara Hudston | 01308 420785 |
| Jet PR (Northern Ireland Public Relations Consultant) Jacqui Thompson | 07803 722322 |
| Investor Relations - Buchanan Communications Ben Willey | 020 7466 5000 |
| Nominated Advisor and Broker - Seymour Pierce Jonathan Wright Sarah Jacobs Richard Redmayne | 020 7107 8000 |
Notes to Editors:
Background on Portland Gas plc ("PG")
The business focus for PG is the development of gas storage projects in the United Kingdom and internationally. It currently has two projects in its UK portfolio; the Portland project in Dorset, and the Islandmagee Storage project in Northern Ireland, which was first announced in July 2007 and in which they have a 65% interest. Further information is available on PG's website www.portland-gas.com.
Background on Northern Ireland Energy Holdings ("NIEH")
NIEH is a company limited by guarantee. Its principal objective is to own and operate energy infrastructure assets in the interests of the energy consumers of Northern Ireland. The company is a mutualised entity and therefore has no shareholders and its primary stakeholders are energy consumers.
NIEH subsidiary Premier Transmission Limited operates the Scotland to Northern Ireland natural gas transmission pipeline ("SNIP"). The 24-inch diameter pipeline is 135 kilometres long and runs from Twynholm in Scotland to Ballylumford in Northern Ireland. It transports gas to Ballylumford Power Station which generates over half of Northern Ireland's electricity needs and feeds the natural gas distribution system in Belfast and the Greater Belfast area. NIEH also operates the Belfast Transmission Pipeline and the 500 megawatt Moyle electricity interconnector to Scotland.
Background on the Islandmagee Storage project
The interpretation of a 3D seismic data acquired in 2007 has indicated that the Permian salt sequence encountered in 1981 in the Larne-2 borehole extends under Larne Lough into the area where Islandmagee Storage Limited (name recently changed from Portland Gas NI Limited) was granted an exploration licence in 2007 by The Crown Estate. The salt in the target area is at a depth of approximately 1,400 metres with a thickness of approximately 200 meters.
The caverns would be created within the salt sequence below Larne Lough but accessed from directionally drilled boreholes on the land. The nearest point of connection to the national gas infrastructure is at the Scotland to Northern Ireland Pipeline above ground installation at Ballylumford. Connection for the power required for surface facilities is available adjacent to the proposed site of the gas facilities.
The facility is being designed to store up to 500 million cubic metres (18 billion cubic feet) of gas.
Background to gas storage
Natural gas is an extremely important source of energy, currently contributing 39 per cent of the UK's energy needs. Over 90% of gas supplies are now imported from GB to the island of Ireland. Northern Ireland is wholly dependent on GB for its supplies. Northern Ireland and Ireland are becoming increasingly dependent on gas for electric power generation with approximately 60% of Northern Ireland's electricity produced by gas-fired power stations.
Gas storage plays an important role in managing swings in demand and mitigating the need for expensive short-term imports. Gas storage facilities can be filled during times of lower demand to be available during periods of higher demand, either on a daily basis or seasonally.
Opportunities for a safe and environmentally friendly method of storing gas are relatively few. One of the safest and most environmentally friendly methods of storing large quantities of gas is deep underground within caverns created within salt sequences. This is a tried and tested method in use all over the world for more than 40 years.