Plans to create a natural gas storage facility at Islandmagee have suffered a blow, after the main investor decided to withdraw from the project.
BP Gas Marketing Limited (BPGM) pulled out following a review of its European-wide gas assets portfolio, which determined that further investment in gas storage in NI is no longer aligned with the portfolio’s objectives.
Accordingly, BPGM and project developer Islandmagee Gas Storage Limited (IMSL) have agreed terms for BPGM to relinquish its option to acquire 50.495 per cent of the shares of IMSL.
IMSL Director, Paddy Larkin, said: “As development partners, we are naturally disappointed by BPGM’s business decision not to invest further in the Islandmagee gas storage project.”
But Mr Larkin made it clear that IMSL still viewed the project very positively.
“It is certainly not the end for Islandmagee, or for gas storage in Northern Ireland,” he said.
“The project remains intact and we have the funds available to secure the project for the future. It remains our firm purpose to find a new investor so that this important project can proceed to the next stage of development.”