InfraStrata UK has acquired an additional 25% stake in Islandmagee Storage Limited – a developer of the gas storage facility in Northern Ireland
Following the deal, InfraStrata UK will own a 90% stake.
A company spokesperson said: “Gas storage is essential for storing surplus gas for use during high demand periods and to offset any interruptions in the supply chain. It is envisaged that the Islandmagee gas storage facility will play an important role in future gas supply to Northern Ireland, Republic of Ireland and Great Britain, particularly the fast supply of gas to meet short-term demand surges. High injection and withdrawal flow rates are two unique properties associated with fast acting salt cavern gas storage such as Islandmagee.”
InfraStrata is currently seeking funding to boost its €4.024m from the EU to develop a Front-End Engineering Design (‘FEED’) and commercialisation process by year end.
InfraStrata chief executive Andrew Hindle said: “InfraStrata represents the only AIM-listed company with a focus on gas storage and this focus, and the importance of the project, has never been greater as we look to complete funding for a FEED and commercialisation process.
“There has been much reporting recently in the press about the potential for a structural change in the gas storage market partially due to the reduction of capacity at the Rough facility, which accounts for approximately two-thirds of UK storage capacity. Management believe that there has not been a better rationale for investing in gas storage for a number of years and the importance of new modern facilities to provide the necessary security.
“The acquisition of the additional interest in Islandmagee Storage Limited is part of a strategy for a focus of management resources on the successful delivery of maximum value from the project to InfraStrata’s shareholders.
“The company will make further announcements on progress in due course and we look forward to updating shareholders.”