InfraStrata has signed an exclusivity agreement to acquire a planned floating storage regasification and reloading unit (FSRU) project in the UK from Cayman Islands-based company Meridian.

The FSRU project includes the development of a floating liquified natural gas (LNG) receiving port offshore Barrow-in-Furness, Cumbria in northwest England. Upon completion, the project will deliver re-gasified volumes of natural gas directly into the UK market through its own national transmission system interconnection at Barrow-in-Furness.

InfraStrata will have three months of exclusivity to look into the feasibility of the project, and if the company said if it is satisfied it will buy the project with the help of investors and financiers.

If the parties agree to go ahead to a formal contractual agreement, InfraStrata will issue 25 million new shares to Meridian, and then another 75 million shares if a final investment decision is taken. The deal also includes a cash consideration at the completion worth over 100 million shares to be issued.

InfraStrata said a typical project such as this would require capital expenditure of between £250m to £400m, taking nearly three to four years to build.

InfraStrata CEO John Wood said: “We are very pleased to enter into this Exclusivity Agreement with Meridian Holdings. The UK gas market is witnessing a significant shift in its supply stack and LNG is set to form an important part.

“As an energy infrastructure company, we are looking at not only building a diverse portfolio of assets but also creating the ability for each asset to complement the others. Such a strategy adds significant trading value to our prospective clients who themselves have a portfolio of energy contracts to monetise.”

InfraStrata said that similar to the Islandmagee gas storage project, it will seek an ongoing project management role along with a minority equity stake in the FSRU project.