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.......was this week's Court of Appeal Judgment re the Injunction at Cuadrilla's site at Preston New Road Blackpool .
for INFA ...Yes or No ? ---that is the question.
As long as Cuadrilla do not shake the earth too much and the Government can prod the otherwise moribund state of such exploration there may after all be much more gas in the pipeline with a secure source of supply.
OK this may scupper the long term need for any new LNG terminals but at least GAS fracking may truly now be in the ascendency ......assuming of course that the earth stays quiet and the nimbies are controlled.
The question posed is how will that affect us.If there is a home produced over supply does that affect storage viability ? May be best for fracking to remain out of favour so that security of supply issues remain ? Answers please !!
Never ever going to a home produced over supply with fracking imo. It's all about having a storage of gas for security of supply and allowing traders to trade
I can see the offtake contenders vying with each other for a piece of the first few caverns. The project starts to become a reality when this rns comes out
Energy security is going to become even more of a hot topic over the next few years and the fact remains that our reliance on Imports is dangerously high leaving us wide open to disruption during outages, peak demand, Brexit, any planned maintenance or force majeure etc. Fracking imo will always be in a fairly limited capacity but either way wherever the gas is sourced we still need somewhere to store it. But in terms of the economics of storage long range storage was just no longer economically viable for several reasons. Add in the estimated refurbishment costs of over £1B to make the failing wells safe for operation and it's no surprise the decision was made to extract the remaining gas from Rough and close it.
However the loss of 3BCM of storage is equivalent to 6 Infa facilities. The future of storage will be the development of more fast cycle MRS sites like that of Infa where the economics do stack up.
mcadder,
Do you have a sense yet of the IRR range for the owner/operator of the IslandMagee project?
The projected 12% IRR for the project is imo conservative and with the CEO's vision for Islandmagee to become a big hydrocarbon hub I believe an IRR could turn out to be 20% a year or more for the next 40+ yrs if the facility is used to it's full potential.
Taken from one of the RNS's earlier this year...........
"Independent verification work undertaken by an international consultancy firm demonstrates a robust return on investment from the Project with a baseline internal rate of return ("IRR") of 12%, with potential for further improvement in certain scenarios, including access to additional grant funding and an extension to the operational life of the Project"