The work of the Energy Select Committee

Whilst all select committees earn the moniker ‘influential’ in the media, the reputation of the House of Commons Energy and Climate Change Committee reputation is gaining within Westminster, as it investigates a host of issues, whilst keeping ministers and officials on their toes. They have been quizzed regularly by the Committee, chaired by Tim Yeo, most recently on March 15th with regard to the EMR.

The Committee has been active in their publications, having released reports on emissions performance, national policy statements, as well as deepwater drilling in response to the Gulf of Mexico oil spill, a report that included a probing session with former BP CEO Tony Hayward.

Under Tim Yeo’s chairmanship, the Committee has real momentum and with a new batch of MPs, it combines a wide variety of interests and experience. Yeo and his Vice-chair Dr Alan Whitehead are both experienced and deeply knowledgeable of the energy sector, as well as being very pro-renewable, a category the former DEFRA and DTI minister Barry Gardiner also falls within.

The sole Liberal Democrat representative is Sir Robert Smith. Labour MPs Albert Owen and John Robertson share interests in nuclear, with the latter being Chair of the Party Group for Nuclear, although both have been strong advocates of renewables.

The rest of the committee is made up from newly elected Conservatives, all of whom have already impressed in the committee. Security of the UK’s energy supply is a constant thread running through the questioning from Dan Byles, Dr Phillip Lee, Christopher Pincher and Laura Sandys.

With Committee reports on the Electricity Market Reform, energy security and shale gas due to be released, and with a wide ranging Energy Bill expected later this year, the Committee certainly has the opportunity to be genuinely considered influential in 2011.

Taylor Keogh strengthens team

Bethan Halls (pictured) joined Taylor Keogh in January to strengthen our media and stakeholder relations work for our clients. Bethan has worked in PR consultancy for the past five years, working on energy and climate change issues, and before that she worked in Parliament.

We have also added to our associate consultant team whom we call upon for specific assignments. Helena Douglas became an associate of Taylor Keogh at the start of the year. Much of her career was at The Economist and now as a freelance writer, Helena work includes researching and writing business case studies, articles and website copywriting. Her primary interests are in sustainable energy and green technology. For details of our other senior-level associates, please visit www.taylorkeogh.com.

In Scotland, Taylor Keogh has an alliance with Budge PR (www.budgepr.com) and in Northern Ireland the company is working with Resolute Public Affairs (www.resolutepa.com).

Client News- GATEWAY GAS STORAGE SECURES NEW INVESTOR: PETROFAC ACQUIRES 20% INTEREST

Gateway Storage Company Ltd, the developer of the 1.5bn cubic metre salt cavern gas storage facility in the East Irish Sea, is pleased to announce that Petrofac, the international oil & gas facilities service provider, has acquired a 20% interest in the company.

Petrofac will join Gateway as the technical project operator and will be jointly responsible for developing the project ahead of a Final Investment Decision next year (2011). Petrofac will be represented on the Gateway Board. The company’s investment in Gateway is based on a cash consideration of up to £33million 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.

The front end engineering and design (FEED) phase of the project is nearing completion and the focus of Gateway Storage will now turn to project execution and finalisation of the consortium of storage capacity holders and investors. Gateway Storage is targeting 2016 for the commencement of storage services to the UK energy market.

When built, Gateway Storage will be one of the UK’s largest salt cavern storage facilities and will add nearly 30% to the current gas storage capacity in the UK market. It secured the UK Department of Energy & Climate Change’s first ever Storage Licence in February 2010 after obtaining the main planning and environmental consents and permits in late 2008.

George Grant, Chairman of Gateway Storage Company Ltd said: “Gateway is the most advanced gas storage project in the UK that has not yet committed to construction, so we are delighted to have an organisation with the execution and operational track record of Petrofac to take the project forward through to financing and into construction. As one of the world’s leading service providers to the oil and gas industries, Petrofac’s experience will be invaluable in realising the project’s significant and strategic benefits to the UK and Irish energy markets.”

Rob Jewkes, Managing Director, Petrofac Energy Developments commented: “Petrofac is pleased to join with Gateway to progress this strategically important and well advanced storage project. With FEED activities largely complete, we are entering the project at this stage to bring confidence to the investor group that execution and delivery objectives for the complete facilities can be met, and will utilise the full capabilities of our group to optimise the facility design and deliver the project.”

For further information contact:

Gateway Storage Company Ltd (www.gatewaystorage.co.uk)

George Grant, Chairman +44 (0)131 550 3380

ggrant@stagenergy.com

Paul Taylor (Taylor Keogh Communications) +44 (0)203 170 8465 / 07966 782611

paul@taylorkeogh.com

Petrofac

Tulchan Communications Group Ltd +44 (0)20 7353 4200

James Bradley

David Allchurch

petrofac@tulchangroup.com

Notes to Editors

Gateway Storage (www.gatewaystorage.co.uk)

Gateway Storage Company Limited plans to build an underground natural gas storage facility in the East Irish Sea, approximately 25 km (15 miles) offshore, south west of Barrow-in-Furness. Storage caverns will be developed in a natural salt structure below the seabed and will enable gas to be delivered, stored and then returned to the UK’s national transmission system.

The offshore facility will provide a significant boost to the security of energy supply in the UK gas market and will help to meet the strategic energy policy objectives of the UK government. When completed, the caverns will have a working capacity of 1.5 billion standard cubic metres (~560 million therms), adding nearly 30% to the current gas storage capacity in the UK market.

Gateway Storage is a company that was formed to develop the gas storage project and is managed by Stag Energy. Stag Energy (www.stagenergy.com) is an independent company, headquartered in Edinburgh. The company, established in 2002, has extensive experience of managing the development, construction and operations of gas storage and power generation projects in the UK and overseas.

Petrofac (www.petrofac.com)

Petrofac is a leading international provider of facilities solutions to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world’s leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and is a constituent of the FTSE 100 Index.

The group delivers services through seven business units: Engineering & Construction, Engineering & Construction Ventures, Engineering Services, Offshore Engineering & Operations, Training Services, Production Solutions and Energy Developments.

Through these businesses Petrofac designs and builds oil & gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac’s range of services meets its customers’ needs across the full life cycle of oil & gas assets.

With around 12,500 employees, Petrofac operates out of six strategically located operational centres, in Aberdeen, Sharjah, Woking, Chennai, Mumbai and Abu Dhabi and a further 19 offices worldwide. The predominant focus of Petrofac’s business is on the UK Continental Shelf (UKCS), the Middle East and Africa, the Commonwealth of Independent States (CIS) and the Asia Pacific region.