A MULTI-million pound project to store gas underneath Port-land is vital to support the country’s energy needs, an influential panel of MPs has indicated.
Support from Westminster gives new hope to Portland Gas whose proposals have been hit by funding problems due to the credit crunch.
The company is now confident construction work will begin this year with the first facility coming online by 2012/13.
Mayor of Weymouth and Portland Tim Munro said the development was ‘very exciting’ for the island.
As well as gas storage, Portland Gas has invested in community projects on the island including turning the Old Engine Shed into a visitor centre.
Storage would involve creating underground caverns to store a billion cubic metres of natural gas – one per cent of the country’s total gas demand – and building a pipeline to feed it across the region.
The country has small amounts of gas storage space compared with some of its European neighbours, and the Government is now seeking to increase energy security in readiness for when North Sea supplies run out.
The escalation of Russia’s gas dispute with Ukraine has highlighted the risks of a European energy crisis while also emphasising the importance of gas storage.
The Parliamentary Business and Enterprise Committee reporting on future energy challenges says Britain urgently requires a growth in storage capacity.
The likelihood of the country reaching continental levels of storage in the next decade ‘will be slim without Government intervention,’ it said.
It notes the hold-ups to the construction of gas storage facilities, including Portland, and suggests some form of storage obligation placed on gas shippers or suppliers.
That’s encouraging news for Portland Gas chief executive Andrew Hindle who is confident his company can beat the credit crunch and secure funding partners.
“The Parliamentary report is very positive. Projects such as ours would be easier to progress if suppliers had to demonstrate they had sufficient storage space,” said Mr Hindle.
He added: “While it may not be good news in eastern Europe, it’s been helpful for us because it’s put the issue of gas storage in the spotlight.”
Fundraising for the £450 million Portland project and a sister scheme in Northern Ireland was suspended last November, with the company blaming the credit crunch.
The company is now seeking a ‘strategic partner’ to provide funding.
Mr Hindle said: “As commodity prices come down, longer-term investments such as ours are now beginning to look more attractive for funds that are available.
“We are confident we’ll be able to put something together in the near future.
Go-ahead for tank farm development
A £5 MILLION project to redevelop a former oil tank farm on Portland has been given the go-ahead by councillors.
The work will not include any buildings but will prepare the site for impending development expected at Osprey Quay before and after the 2012 Olympics and include a new road and boat park.
Members of Weymouth and Portland Borough Council’s planning and traffic committee voted unanimously in favour of the plans for infrastructure works on the former site of the Mere Tank Farm on Wednesday.
The long-term plan is to turn the site into employment space that could support hundreds of jobs.
But first, the 10-acre area, which was bought and cleared last year by the council, has been earmarked to support the staging of the sailing events for the 2012 Games and for test events in 2010 and 2011.
The South West RDA is investing £5 million in the project, which will be managed by the council.
Alison Hatcher, head of regeneration at the South West RDA, said: “We’re investing £38 million in Osprey Quay to transform it into a hub of marine business and leisure activity and we’re delighted that the tank farm proposals can go ahead.
“This is an important site for the 2012 Games and longer term, will be home to hundreds of jobs, so our investment is unlocking its business potential.”
Councillor Peter Farrell, left, chairman of the planning committee, said: “We see it as a further step in the regeneration of Osprey Quay.
“The two-stage approach to using the site, initially for the Games and essential facilities, and then after 2012 for new business development, will add to the creation of more potential new jobs on Portland, meeting the needs of the Borough as a whole.”
Work will include major earthworks to fill and level the site, drainage and other services to allow for future employment development.
There will be a new link road and cycleway between the Weymouth and Portland National Sailing Academy and the central roundabout on Portland Beach, car or boat parking and boat maintenance areas for the sailing academy, and a temporary overflow car park.
After the Games the council and the RDA will submit a planning application to create a range of new workspace.
Work on site is expected to begin in March.
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