Predator Sets up Irish Unit to Import LNG

London-listed Predator Oil & Gas has established a new subsidiary in Ireland to develop a floating storage and regasification unit (FSRU) project to import LNG into the country, it said on June 15.

Predator has signed a non-exclusive confidentiality agreement with one potential gas purchaser, to look at terms for a possible gas sales contract, it said. Earlier it also signed similar deals with a global LNG supplier and the owner of a regasification terminal. Predator has also appointed Ireland's SLR Environmental Consulting as a regulatory, planning and environmental advisor for the project.

Predator also took aim at a competing FSRU project being developed by Infrastrata in Barrow-in-Furness, northwest England. This facility too would supply some of its gas to Ireland.

Predator's projected capital expenditure costs are "significantly less" than those at the Infrastrata scheme, as its project will utilise existing infrastructure linked directly to the Irish gas network without needing new infrastructure to be built. Predator's project is expected to have around 40% of the technical capacity of Infrastrata's, but its margins will be higher, because of lower capital and operating costs.

"This significantly reduces the lead time to a financial investment decision, as lower levels of risked capital can be absorbed as an operating cost over the anticipated 20 to 25-year life of the FSRU project," Predator said.