InfraStrata Eyes Role In Cumbria FSRU

Natural gas storage project developer InfraStrata is weighing up whether to take part in the development of an LNG floating storage and regasification unit (FSRU) in Cumbria, northern England.

The company said on July 9 it had signed an exclusivity agreement with Cayman Islands-based Meridian Holdings, which is developing the proposed import project in Barrow-on-Furness.

InfraStrata now has three months to study the venture’s feasibility and conduct due diligence before the exclusivity deal expires. If satisfied, it will look for investors and financiers for help with the project.

Should a deal go ahead, InfraStrata will issue 25mn new shares to Meridian, along with an additional 75mn if a final investment decision (FID) is reached. A cash payment worth 100mn shares would also be made when the purchase is closed.

“We are very pleased to enter into this exclusivity agreement with Meridian Holdings. The UK gas market is witnessing a significant shift in its supply stack and LNG is set to form an important part,” InfraStrata CEO John Wood said in a statement.

InfraStrata said a project like the Cumbria FSRU would typically require a £250-400mn ($312-500mn) investment and take three to four years to implement. Barrow-in-Furness is landing-point for Morecambe Bay gas and so has a major connection to the national gas grid.