Predator Oil & Gas (AIM:PRD)  has today confirmed the incorporation of its new subsidiary company, Predator LNG Ireland Limited. 
 
The Jersey-based oil and gas company announced last month that it would be establishing a new Irish company called Predator LNG Ireland to apply for an LNG important licence. 
 
Predator also said it has appointed SLR Environmental Consulting as regulatory, planning and environmental advisors to Predator LNG Ireland to advance Predator’s Floating Storage and Regasification Unit ("FSRU") solution for Ireland. 
 
The group has executed a non-exclusive confidentiality agreement with one potential gas purchaser to develop scoping commercial terms for any future potential gas sales contract. 
 
Predator had previously noted the announcement on 28 May 2020 by InfraStrata (AIM:INFA) in relation to their proposed FSRU Project, located in Barrow-in-Furness, northwest England. 
 
The group said comparative CAPEX costs for the Predator FSRU solution are ‘significantly less’ due to the potential to utilise existing infrastructure, which ties directly into the Irish gas transmission network, therefore eliminating the requirement for any new fixed infrastructure. 
 
Shares in Predator Oil & Gas opened flat at 3.25p on Monday morning. 

Predator has estimated that project revenues are consistent with those quoted for the Barrow-in-Furness FSRU Project of around £80 to £100 million.  
 
The group’s scoping technical capacity is around 40% of that for the Barrow-in-Furness project ‘but seems to generate high profit margins due to lower capital and operating costs resulting from the mature nature of the infrastructure that can be potentially utilised.’ 
 
This will ‘significantly reduce’ 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.   
 
“Brexit is making Ireland largely dependent on the United Kingdom for security of energy supply against a background of difficult trade negotiations,” said Paul Griffiths, CEO of Predator.  
 
“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,” he said. 
 
He added, “The FSRU Project can maintain this tradition by providing a pragmatic and practical solution to security of energy supply utilising existing infrastructure."
 
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