Media Section
Gas Security for Northern Ireland Moves a Step CloserGas Security for Northern Ireland Moves a Step Closer
Local company Northern Ireland Energy Holdings Limited (NIEH) – operator of the Scotland to Northern Ireland Pipeline (SNIP) and the 500 megawatt Moyle electricity interconnector – has joined forces with UK natural gas storage company Portland Gas plc in its bid to develop natural gas storage in salt cavities below Larne Lough.
NIEH has signed a “Heads of Terms” agreement with Portland Gas NI Limited, a wholly owned subsidiary of Portland Gas plc, to take a 35% stake in this exciting development. The project will provide storage for natural gas in caverns created within the thick salt sequence deep below Larne Lough. The caverns will be situated almost a mile below the seabed and accessed from boreholes drilled onshore. The gas storage facility will be connected to the natural gas infrastructure at the Scotland to Northern Ireland Pipeline above-ground installation on Islandmagee.
Initial studies indicate that the storage facility could store up to 500 million cubic meters of gas, enough to supply Northern Ireland for about three months. Following necessary due diligence and consultation with its stakeholders NIEH expects to become a Joint Venture Partner in the development of this strategically important infrastructure. The Utility Regulator has been briefed, and is supportive of the storage project, but has not given any regulatory approvals.
The storage facility will bring significant benefits for energy users in Northern Ireland. It will provide a more flexible supply of gas to better meet customers’ demands, thus creating more price stability and provide Northern Ireland with enhanced security of supply. At present Northern Ireland and the Republic are very reliant on a secure supply of natural gas, not only to meet the needs of gas customers but also to supply gas fired power stations – which themselves produce around 60% of Northern Ireland’s electricity.
The project is therefore very important for the development and future security of natural gas supplies to Northern Ireland. NIEH has been providing local support for the development of this gas storage project with Portland Gas.
Bill Cargo, Managing Director of NIEH’s existing gas pipeline subsidiary Premier Transmission, said:
“We have been working closely with Portland Gas for over a year. Portland Gas has expertise in developing natural gas storage facilities and NIEH provides local knowledge of the energy market, gas transmission system and the regulatory regime.”
Andrew Hindle, CEO of Portland Gas plc, said: “NIEH involvement is integral to the success of this strategically important project. With their long-term approach and intimate understanding of local customers,, regulatory and government needs, the mutual energy infrastructure company is an ideal partner for Portland Gas NI Limited.”
The seismic survey undertaken by Portland Gas at the end of last year has produced positive results with data indicating the presence of a suitable salt sequence below Larne Lough. The company now plans to drill a borehole later this year to confirm the data collected. A planning application accompanied by a detailed Environmental Statement, will be submitted next year (2009) with construction work commencing on the outcome of a successful application. It is hoped that the storage facility could become operational around 2013/14. NIEH is pleased that Portland has developed good communication about the project with the local community in the Larne and Islandmagee areas, and there is potential to create increased employment during both the construction and operational stages of the project.
Mr Cargo added: “Northern Ireland Energy Holdings offers a unique and well proven mutual model for financing transmission assets at a lower cost to the consumer and a solid track record of managing strategic energy assets safely and efficiently.
The company combines the stability and public service ethos of the nationalised industry with the efficiency and performance culture learnt in the private sector.
This project will bring major strategic benefits for all energy consumers in Northern Ireland. The storage facility will also support the development of possible future common gas arrangements on the island and bring increased market stability”.
Ends
Notes for editors:
- The joint venture company will be between Portland Gas NI Limited and Moyle Energy Investments Limited, a wholly owned subsidiary of Northern Ireland Energy Holdings – a company limited by guarantee, with its principal objective 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.
- William Cargo is an Executive Director of NIEH and Managing Director of NIEH’s gas pipeline subsidiaries Premier Transmission and Belfast Gas Transmission. Copy of William Cargo photo attached.
- Portland Gas NI Limited is a wholly owned subsidiary of Portland Gas plc a business focuses on the development of gas storage projects and associated infrastructure in the United Kingdom and internationally. It currently has two projects in its portfolio, the first on Portland, Dorset, and the second at Larne Lough in Northern Ireland. Further information is available on the Company’s website www.portland-gas.com.
- Gas storage brings two primary benefits to the gas market of Northern Ireland:
- It provides enhanced security and can be used to keep customers connected in the event of supply interruption for any reason.
- It allows gas suppliers to stockpile supplies when wholesale gas prices are low and use these stocks at times when prices are high. Competition in this area drives down the price to consumers.
- It provides enhanced security and can be used to keep customers connected in the event of supply interruption for any reason.
- The island of Ireland imports practically all its gas
- All imported gas comes via a single point in Britain
- Currently there are no significant indigenous supplies
- A very high and rising percentage of its electricity generation plant is gas-fired
- There is insignificant gas stored on the island.
- All imported gas comes via a single point in Britain
For further information contact:
Northern Ireland Energy Holdings Press & Media Contact
Owen McQuade
Lagan Consulting
T: 028 9261 9550
M: 07967 094494
email: owen.mcquade@laganconsulting.com
Last Updated: 6th May 2008