Gulf News reported that Petrofac, the international oil and gas facilities service provider has acquired 20% interest in Gateway Storage Company Limited to progress and develop the Gateway Gas Storage project in the east Irish Sea.

The cash consideration could be up to EUR 33 million over time funded from cash resources. This is split into a fixed upfront payment and additional contingent payments subject to key project development milestones being achieved including the outcome of a further successful equity sales process.

Petrofac will join Gateway as the technical project operator, jointly responsible for developing the project and will be represented on Gateway's Board. The front end engineering and design phase of the project is nearing completion and the focus is now turning to project execution and finalization of the consortium of storage capacity holders and investors to develop the project towards the final investment decision in 2011.

The Gateway Storage project which would add nearly 30% to the current gas storage capacity in UK, secured the first Gas Storage Licence from the UK Department of Energy and Climate Change last February after receiving the planning and environmental consents and permits in 2008. Gateway is targeting 2016 for the commencement of storage services to the UK markets.

Mr Rob Jewkes MD of Petrofac Energy Developments said that "Petrofac is pleased to join with Gateway to progress this strategically important and well advanced storage project."

(Sourced from Gulf News)