Portland Gas in talks over funding for Dorset venture

Published on Saturday 11 October 2008 00:34

SMALL BUT BEAUTIFUL

PORTLAND Gas, which wants to store North Sea gas beneath a former Royal Navy base in Dorset, yesterday said funding discussions were progressing and potential investment terms have been discussed "with a range of parties".

The group – which began trading on Aim in January after demerging from Egdon Resources, its former parent company – said: "Terms are currently being standardised and presented to prospective joint venture partners, which include major utilities and integrated oil and gas companies."

The news came as Portland Gas, which has a market cap of about 152 million, presented its preliminary results for the year to 31 July. It made a loss of 1.6m, which included de-merger costs amounting to just over 430,000.

The group wants to store gas in salt caverns deep below the former HMS Osprey Royal Navy base at Portland.

Planning permission for the facility has been granted and permission given to build a pipeline to connect the caverns to the national gas pipe network.

Portland Gas also has a subsidiary in Northern Ireland, which is investigating the possibility of storing gas below Larne Lough.