SNIP Reverse Flow -EU FEED Study Grant application
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.
14 June 2019
("InfraStrata" or the "Company")
Application for EU FEED Study Grant - SNIP Reverse Flow
InfraStrata plc (AIM: INFA), the UK quoted company focused on the development of natural gas storage capacity, is pleased to announce that it has submitted an application for a grant from the EU's Connecting Europe Facility ("CEF") - 2014-2020. The "Grant for Studies" application is for design and preliminary works, to be managed by InfraStrata, that would be required to facilitate the proposed enablement of reverse flow of the Scotland to Northern Ireland gas pipeline ("SNIP") (the "Study Grant").
Mutual Energy Limited ("MEL"), through its subsidiary Premier Transmission Limited ("PTL"), is the owner and operator of the SNIP and project promoter that currently holds EU Project of Common Interest ("PCI") status for the proposed reverse flow of the SNIP (the "SNIP Project"). The Company's gas storage project in Islandmagee (the "Gas Storage Project") is in the same PCI group as MEL's SNIP Project as it is an enabling project for the Gas Storage Project. MEL / PTL fully endorses InfraStrata making the independent CEF grant application (which will include studies on the MEL / PTL owned SNIP) with their support and approval.
The main objective of the Study Grant is to perform the Front-End Engineering and Design ("FEED") study for the SNIP Project for the purposes of enhancing the Gas Storage Project. The FEED study will identify technical requirements and design parameters for the SNIP Project. The scope of the Study Grant includes selection of FEED contractor, selection of planning / environmental consultant, FEED study - pre-engineering, FEED study - engineering, and planning / environmental activities that will enable the various planning applications to be submitted.
The SNIP Project objective is that allowing bi-directional flow between Northern Ireland ("NI") and Great Britain ("GB") (which is currently one-way to NI) will increase the amount of flexibility available within the gas markets in GB, NI and the Republic of Ireland, enabling greater interconnectivity across these three neighbouring markets whilst supporting the achievement of national renewable and carbon reduction targets. The Study Grant works includes all the studies necessary for the Gas Storage Project to achieve maximum commercialisation and to allow the SNIP Project to enter the execution and construction phase. Under the current timeline, it is expected that InfraStrata will have at least 2 to 4 gas storage caverns in operation at Islandmagee before it would utilise the reversed SNIP. The reversal of the SNIP would be operationally required around 2025/26, by which time it is expected that all 7 caverns would be in full commercial operation.
Total cost of the Study Grant works is estimated at €9,299,446.00 with a maximum 50 per cent being permissible as a direct grant to InfraStrata from the CEF and for which the application has been made. A decision on the grant application is expected by the end of 2019. InfraStrata is not obliged to provide the balance of funding for the Study Grant, which will be considered by MEL and those involved in the SNIP Project in due course at a later stage. The SNIP Project would enable greater flexibility and connectivity for the Gas Storage Project but would not be required in any event until 2025/26.
John Wood CEO of InfraStrata commented "We are delighted to have been working with Mutual Energy and Premier Transmission over an extended period and are happy to have written and submitted the grant application to the EU. We look forward to working in consultation with Mutual Energy and Premier Transmission as this work stream develops, which we feel is worthy of support from the Connecting Europe Facility".
For further information, please contact:
John Wood, Chief Executive and Interim Chairman
c/o Yellow Jersey
+44 (0)20 3004 9512
Allenby Capital Limited (AIM Nominated Adviser & Broker)
Jeremy Porter / Liz Kirchner
+44 (0)20 3328 5656
Tim Thompson / Henry Wilkinson
+44 (0)20 3004 9512
Notes to editors:
InfraStrata is an independent gas storage company focused on the UK and Ireland. Further information is available on the Company's website: www.infrastrataplc.com
Background on the Islandmagee Storage Project
The Islandmagee gas storage project is a proposed salt cavern gas storage facility located on Islandmagee in County Antrim, Northern Ireland. The Board of InfraStrata believes that the proposed 500 million cubic metres natural gas cavern storage facility will provide over 25% of the UK's natural gas storage once constructed. The facility will be situated adjacent to the Scotland Northern Ireland (gas) Pipeline (SNIP) and the Moyle 500-megawatt electricity interconnector. Work commenced in 2007 with the acquisition of 3D seismic data to image the Permian salt in the Larne Lough area. During 2012, planning permission was granted for the project and a gas storage licence was issued by the Utility Regulator. In 2015 a well was drilled to core the salt and confirm the technical feasibility of the project, supported in part by the European Commission. The Front-End Engineering and Design (FEED) element of the Project was completed in November 2018 and the FEED report was submitted to the European Union in December 2018 in accordance with the Company's grant conditions. To date approximately £14.5m has been invested in the project.
Further information is available on the company's website:www.infrastrataplc.com
The Front-End Engineering & Design (FEED) and Insitu Downhole Testing programme for the Islandmagee gas storage project is co-financed by the European Union's Connecting Europe Facility.
Disclaimer releasing the European Union from any liability in terms of the content of the dissemination materials:
"The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein."
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.