LONDON – InfraStrata has a conditional agreement with West Face Long Term Opportunities Global Master L.P to acquire Meridian Holdings’ proposed floating storage and regasification unit (FSRU) project in the East Irish Sea off northwest England.
The project, which would be the UK’s first FSRU, would involve developing a floating LNG receiving facility offshore Barrow-in-Furness, Cumbria, designed to deliver 5-6 MM metric tons/yr (5.51-6.61 MM tons/yr) of re-gasified volumes of natural gas directly to the UK market via a national transmission system interconnection.
InfraStrata estimates the cost in the range £350-£450 million ($438-563 million), with funding provided by a consortium of companies.
The company claims the project would strengthen the UK’s security of supply by helping to balance the gas network during peak demand days, and enabling long-term storage of regasified LNG for future withdrawals from underground gas storage.
Project revenues could approach £80-£100 million ($100-125 million) annually over a 25 to 30-year lifespan.
Offtake discussions have already started with LNG trading houses.
John Wood, CEO of InfraStrata, said: “The continued traction that we have been receiving from global players within the LNG markets since the day we announced the exclusivity agreement last year, validates our belief that this FSRU project is strategic and crucial to the UK's future natural gas supplies…
“The intermittency of power generation from wind and solar means natural gas will continue to be the fuel of choice for at least the next few decades.”