LONDON – InfraStrata has entered an exclusivity agreement with Meridian Holdings concerning acquisition of a floating storage regasification and reloading unit (FSRU) project offshore northwest England.
This would involve installing a floating LNG vessel offshore Barrow-in-Furness, Cumbria, which would deliver re-gasified volumes directly into the UK grid via the National Transmission System interconnection at the port.
According to InfraStrata, around 30% of the UK’s gas supply in the future could come from LNG but this would be the first FSRU project, with a projected capacity of around 5 MM metric tons/yr (5.5 MM tons).
In addition to strengthening the UK’s gas supply security it would help balance the gas network during peak demand periods.
The Borough of Barrow-in-Furness has approved the offshore segment of the FSRU project, and a review of the associated requirements is under way.
Land parcels and easements for the project’s onshore above-ground installations and pipelines have been acquired or are subject to the exercise of option agreements.
InfraStrata says a typical FSRU project of this scale would incur capex of £250-400 million ($313-501 million) with a construction period of three to four years.
The company plans to approach investors to provide project and investment finance to enable acquisition of the project and all associated assets and engineering data.
Investors would take equity stakes in InfraStrata Energy UK, with InfraStrata pursuing a project management role while retaining a minority equity interest in the project.