Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco, and Ireland, confirms the incorporation of its new subsidiary company Predator LNG Ireland Limited.
SLR Environmental Consulting (Ireland) Limited has been appointed as regulatory, planning and environmental advisors to Predator LNG Ireland Limited to advance Predator's Floating Storage and Regasification Unit ("FSRU") solution for Ireland.
Predator has executed a non-exclusive confidentiality agreement with one potential purchaser of gas to facilitate the exchange of information to develop scoping commercial terms for any future potential Gas Sales Contract.
Predator noted the announcement on 28 May 2020 by Infrastrata plc in relation to their proposed FSRU Project, located in Barrow-in-Furness, northwest England.
Comparative CAPEX costs are significantly less for the Predator FSRU solution due to the potential to utilise existing infrastructure which ties directly into the Irish gas transmission network. This eliminates the requirement for any new fixed infrastructure.
Predator scoping technical capacity is not over-sized and is tailored to favour the strategic importance of securing premium prices for immediate access to indigenous local gas and energy supply during peak demand days when demand cannot be met by other sources of energy.
Predator estimated project revenues are consistent with those quoted for the Barrow-in-Furness FSRU Project of £80 to £100 million. Predator scoping technical capacity is approximately 40% of that for the Barrow-in-Furness FSRU Project but generates high profit margins due to lower capital and operating costs resulting from the mature nature of the infrastructure that can be potentially utilised. 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.
Paul Griffiths, Chief Executive of Predator, commented:
"Industrial and commercial energy users require certainty that peak day energy demands will be met in order to maintain competitiveness and secure investment for business growth to perpetuate alignment with their European neighbours. Brexit is making Ireland largely dependent on the United Kingdom for security of energy supply against a background of difficult trade negotiations. Southeast Ireland and the Cork area in particular has benefited greatly from the production of gas at Kinsale, by providing jobs, service industries and allowing sustained economic growth. It has historically been the energy hub for Ireland. The FSRU Project can maintain this tradition by providing a pragmatic and practical solution to security of energy supply utilising existing infrastructure. Promoting business recovery and expansion following the severe economic impact of COVID-19 will be necessary despite an environment of significant debt burden and reduced government taxes."