Formation of Co-operation Group

 

TIDMPTG 
 
RNS Number : 2618B 
Portland Gas plc 
23 October 2009 
 

 
 
 
 
 
 
 
 
 
 
 
 
23 October 2009                                                             For 
Immediate Release 
 
 
 
 
 
 
Portland Gas 
 
 
Formation of Co-operation Group of potential investors in the Portland Project 
 
 
 
 
The Directors of Portland Gas plc (AIM: PTG) ("the Company") are pleased to 
announce that a Co-operation Group has been established in connection with the 
proposed 1 billion cubic metre gas storage project which is to be created at the 
Isle of Portland in Dorset, UK. 
 
 
The Group consists of five companies who have each expressed an interest in 
possibly acquiring a working interest in the Portland Project, together with 
Infrastrata UK Limited (the subsidiary of Portland Gas plc that currently owns 
Portland Gas Holdings Limited ("PGL")). The Group will work together to conduct 
a feasibility study in respect of the Project. PGL's legal advisor, Field Fisher 
Waterhouse LLP, will draw up a Shareholders' Agreement and a separate Capacity 
Agreement. In parallel, PGL's project finance advisor, BNP Paribas, will work on 
the development of the financing structure. 
 
 
 
 
 
 
For further information please contact: 
 
 
Portland Gas plc 
 
 
Andrew Hindle, Chief Executive Officer                  020 8332 1200 
Craig Gouws, Chief Financial Officer 
 
 
PR - Watershed 
 
 
Sara Hudston                                 01308 420785 
 
 
Investor Relations - Buchanan Communications 
Ben Willey                                        020 7466 5000 
 
 
Nominated Advisor and Broker - Seymour Pierce 
 
 
Jonathan Wright                                    020 7107 8000 
Sarah Jacobs 
Richard Redmayne 
 
 
 
 
  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. 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 Portland Project company, Portland 
Gas Holdings Limited, would then be renamed to "Portland Gas Limited". 
 
 
Portland Project 
 
 
At a projected 1,000 million cubic metres ("mcm") or 35 billion cubic feet 
("bcf") of working gas, the facility would 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. The 
current estimate of total development cost for the project is GBP456m. The 
project will use brine compensation technology and will not require cushion gas. 
 
 
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 
UK?Continent 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. 
 
 
Background on BNP Paribas 
 
 
BNP Paribas Group is one of the world's largest Banking groups with a strong 
balance sheet of over EUR1,517 billion and a market capitalization of 
approximately EUR27.6 billion (as of December 2008). With over 205,000 employees 
and an active presence in over 83 countries, it is a leading international 
institution operating in the world's seven largest financial centres and engaged 
in structured financing worldwide. BNP Paribas' franchise in Project Finance 
relies on an experienced team of over 100 professionals. BNP Paribas has been 
awarded Best Global Infrastructure & Project Finance House by Euromoney in 2009. 
 
 
 
 
Further information is available on the Company's website www.portland-gas.com. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCMGMZGVZNGLZM