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23/03/2010
Undersea Caves Gas Storage Plan Welcomed
Almost two years after the idea first emerged, the business behind a huge undersea gas storage facility off the coast of Northern Ireland is seeking planning permission.
The application, by Islandmagee Storage Limited (IMSL), relates to the creation of a 500 million cubic metres natural gas storage facility in Permian salt beds almost a mile beneath Larne Lough, with this method of storing natural gas already used throughout Europe for more than 40 years.
The project has the potential to create around 200 construction jobs during its seven-year development with an additional 20-30 longer term operational posts.
They said that the gas is to be stored in seven caverns 1,500 metres below sea level in 200 metre thick layers of ancient salt.
The SDLP Energy spokesperson and East Antrim election candidate Justin McCamphill said it is important that the NI Executive should have a strategy to realise the full economic potential of the proposed gas storage facility at Islandmagee.
Welcoming the planning application for the project, he said: "East Antrim has the only suitable geology on the island of Ireland for major gas storage and we must exploit it to the full.
"This £250 million project will generate economic activity during the construction phase, but we really need to look now at its long-term economic potential.
"It also opens up the possibility of attracting companies with a particular need for security of gas supply, and Invest NI should now be targeting such companies in the international investment marketplace," he commented.
The politician was speaking after the Managing Director of IMSL Andrew Hindle said the application was a "major milestone" for the £250m project.
The site is located near NI's gas infrastructure and, IMSL believes, the thickest development of salt in Northern Ireland at Ballylumford, Islandmagee, Co Antrim.
"This proximity to infrastructure reduces both the environmental impact of the facility and its cost of construction," he said.
"The estimated cost of £250m is very competitive when compared to other proposed storage facilities in the UK on a storage volume basis especially given the flexibility of storage service it could offer."
The site is designed to supply up to 5% of UK and Ireland demand on a peak day and aid in security of energy supply.
The company said that if there was a supply disruption from Scotland the facility could meet more than 60 days of peak demand within Northern Ireland.
The project is a joint venture between energy infrastructure company Infrastrata plc and Mutual Energy Limited, which owns and operates the Moyle Interconnector which links the electricity systems of Northern Ireland and Scotland.
The plans to store natural gas deep under Larne Lough were mooted in May 2008 after test bores carried out by two energy companies were successful.
The then NI Energy Minister Nigel Dodds welcomed the collaborative natural gas storage project in underground salt caverns.
After details of the project were made known - following completion of seismic studies of the geology in the Larne area which indicated significant potential for a gas storage facility - the Minister said: "This announcement significantly increases the prospect of an underground gas storage facility in East Antrim which could enhance the security of natural gas supply for Northern Ireland."
Northern Ireland remains almost exclusively dependent on natural gas supplies from Great Britain and is therefore vulnerable in the event of a major mechanical failure or market circumstances leading to a reduction in gas supplies.
See: Undersea Gas Storage Plan Revealed
See: www.islandmageestorage.com/index.php?option=com_frontpage&Itemid=1
(BMcC)
The application, by Islandmagee Storage Limited (IMSL), relates to the creation of a 500 million cubic metres natural gas storage facility in Permian salt beds almost a mile beneath Larne Lough, with this method of storing natural gas already used throughout Europe for more than 40 years.
The project has the potential to create around 200 construction jobs during its seven-year development with an additional 20-30 longer term operational posts.
They said that the gas is to be stored in seven caverns 1,500 metres below sea level in 200 metre thick layers of ancient salt.
The SDLP Energy spokesperson and East Antrim election candidate Justin McCamphill said it is important that the NI Executive should have a strategy to realise the full economic potential of the proposed gas storage facility at Islandmagee.
Welcoming the planning application for the project, he said: "East Antrim has the only suitable geology on the island of Ireland for major gas storage and we must exploit it to the full.
"This £250 million project will generate economic activity during the construction phase, but we really need to look now at its long-term economic potential.
"It also opens up the possibility of attracting companies with a particular need for security of gas supply, and Invest NI should now be targeting such companies in the international investment marketplace," he commented.
The politician was speaking after the Managing Director of IMSL Andrew Hindle said the application was a "major milestone" for the £250m project.
The site is located near NI's gas infrastructure and, IMSL believes, the thickest development of salt in Northern Ireland at Ballylumford, Islandmagee, Co Antrim.
"This proximity to infrastructure reduces both the environmental impact of the facility and its cost of construction," he said.
"The estimated cost of £250m is very competitive when compared to other proposed storage facilities in the UK on a storage volume basis especially given the flexibility of storage service it could offer."
The site is designed to supply up to 5% of UK and Ireland demand on a peak day and aid in security of energy supply.
The company said that if there was a supply disruption from Scotland the facility could meet more than 60 days of peak demand within Northern Ireland.
The project is a joint venture between energy infrastructure company Infrastrata plc and Mutual Energy Limited, which owns and operates the Moyle Interconnector which links the electricity systems of Northern Ireland and Scotland.
The plans to store natural gas deep under Larne Lough were mooted in May 2008 after test bores carried out by two energy companies were successful.
The then NI Energy Minister Nigel Dodds welcomed the collaborative natural gas storage project in underground salt caverns.
After details of the project were made known - following completion of seismic studies of the geology in the Larne area which indicated significant potential for a gas storage facility - the Minister said: "This announcement significantly increases the prospect of an underground gas storage facility in East Antrim which could enhance the security of natural gas supply for Northern Ireland."
Northern Ireland remains almost exclusively dependent on natural gas supplies from Great Britain and is therefore vulnerable in the event of a major mechanical failure or market circumstances leading to a reduction in gas supplies.
See: Undersea Gas Storage Plan Revealed
See: www.islandmageestorage.com/index.php?option=com_frontpage&Itemid=1
(BMcC)
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