LONDON, Jan. 9 /CNW/ - Canatxx Gas Storage Limited ("CGSL") and Canatxx
LNG Limited ("CLNG") ("Canatxx" or the "Company") has today announced that it
has retained BNP Paribas Corporate Finance to advise it in seeking strategic
investors to take a stake of up to 50 per cent in the Company.
The planned gas storage facility is located in the county of Lancashire
on the Irish Sea coast. The site is planned to be the largest onshore natural
gas storage facility in the UK, with initial working storage capacity of 12
billion cubic feet (bcf) in 2013, increasing to 42 bcf by 2018.
Canatxx is also seeking indications of interest from parties to enter
into long-term gas storage agreements of up to a total of 20 bcf. The Company
is offering withdrawal from storage with firm entry rights into the National
Bidders are also invited to express interest in an option to purchase
equity and/or terminal usage rights from Canatxx LNG Limited, which owns the
LNG re-gasification project at Anglesey, Wales. Canatxx received its planning
permission in March 2008 and this is one of the only permitted LNG projects in
William Reynolds, Chief Financial Officer of Canatxx, said, 'The United
Kingdom is currently the world's seventh largest gas market, but the volume
and flexibility of domestic gas production have been in decline since 2000 and
this trend is expected to continue, increasing the country's net import
requirements over the coming years.
'In addition, decreasing domestic production, an expected growth in gas
fired generation and increased renewable generation are expected to result in
substantially higher volatility and larger swings in short-term gas demand.
'Addressing these developments is widely anticipated to require
considerable gas storage capacity growth with a particular need for highly
responsive and flexible gas storage capabilities.
'Our planned facilities will add significantly to the UK's existing
flexible gas storage and increase the capacity to add gas into the
transmission system on a daily basis. We are submitting our planning
application for this facility to Lancashire County Council in early 2009.
'The total capital required for the gas storage project is in excess of
GBP300 million. The project represents a unique opportunity to develop the
last and largest on-land salt cavern natural gas storage facility in the UK.
Salt cavern gas storage is dynamic and highly responsive, especially when
compared to storage in depleted gas fields. This combination of LNG
re-gasification linked directly to fast-cycle gas storage makes this one of
the only integrated facilities in the world providing an unmatched ability to
respond to short-term natural gas demand volatility cost-effectively.
We look forward to working with equity investors on this exciting
development which will be of strategic importance to reducing volatility in
the UK gas market in the years ahead.'
Notes to Editors
Canatxx was formed in 1988 to pursue opportunities in deregulated private
power generation and natural gas markets. The background of Canatxx employees
and consultants includes the design and construction of pipeline gas
compression equipment and a gas compressor station virtually identical to the
station to be used in the Project. Canatxx has assembled a team of experts in
the design and construction of gas storage salt caverns and the design and
construction of gas and water pipelines.
For further information:
For further information: Simon Petar, Gardant Communications, London,
SW1P 4AT, +44(0)20-7976-5555 or +44(0)7841-672-451; William W. (Bill)
Reynolds, Chief Financial Officer, Canatxx, 777 N. Eldridge Pkwy, Suite 200,
Houston, TX, 77079, (281) 679-0099