IOG completes 'key step' in Thames pipeline revamp

Development and production focused oil and gas firm Independent Oil & Gas saw its shares rise on Tuesday as it works to confirm the integrity of the Thames Pipeline.

The work, which has already confirmed that the offshore section of the pipeline is in excellent condition, is a “key step” in its Southern North Sea dual gas hub development project, the company said.

In the coming weeks a planned inspection of the Bacton end of the pipeline will inform an elevated pressure hydrotest in the final step of integrity confirmation.

In preparation for the hydrotest the company will run a measurement device from the Bacton terminal in Norwich to around 1km offshore to assess the internal condition, which will take place this month and in August.

The pipeline was decommissioned in 2015 but, after analysis of a point of the pipeline 60km offshore, recalibration has enabled its current condition to be considered practically ‘as new’.

Andrew Hockey, chief executive of AIM-listed IOG, said: "We are now implementing an optimised programme to provide full and conclusive confirmation of the integrity of the Thames pipeline. Thanks to some excellent work by the IOG team and support of the regulatory authorities, this does not require an intelligent pig re-run in the short term."

Hockey added that with recent developments the project remains on schedule to hit first gas in late 2019.

Independent Oil & Gas’ shares were up 6.36% at 29.25p at 1418 BST.