Shares of shipyard and energy infrastructure group Harland & Wolff Group Holdings plc (LON: HARL) have surged Wednesday in response to its announcement regarding its subsidiary, Islandmagee Energy Limited, and the Islandmagee Gas Storage project.
The Department of Agriculture, Environment & Rural Affairs (DAERA) said that it will issue the Environmental Consent Decision, Marine Licence, reviewed Abstraction Licence and Discharge Consent for the Islandmagee Gas Storage project.
The said company has reviewed the conditions attached to the draft Marine Licence and “believes that they are fair and reasonable, and therefore, acceptable,” which will see DAERA the licence.
The issuance of this licence will help the abstraction and discharge of seawater and brine, respectively, during the cavern formation.
The gas storage project and licence comes when there is a gas supply crisis in Europe, with low levels of storage available in the UK. HARL believes the project can enable Northern Ireland to become a net energy exporter to the wider United Kingdom.
Harland & Wolff's Group CEO, John Wood, commented: “This marks a major step forward in the Project's journey, paving the way for the construction of our proposed facility. We have worked tirelessly over a two-year period to ensure that our proposals meet and exceed legislative requirements, taking onboard the many comments made by the local community and other stakeholders.
“A lot has changed within the global gas markets over the last two years. The recent energy supply crisis has raised awareness of how vulnerable we are to gas and power markets volatility. Everybody now understands just how important gas storage is for the country's security of supply and to help stabilise gas prices for the end-consumer.”
The furore surrounding the gas crisis means it is no surprise investors have taken note of the announcement. Harland & Wolff's shares are trading 22.54% above Tuesday's close at 21.75p at the time of writing.
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