Brussels, 01/07/2009 (Agence Europe) - On Tuesday 30 June, the European Investment Bank (EIB) signed a loan of £360 million with National Grid to support the company's investment programme for the upgrade and extension of its four gas distribution networks in the UK.
The EIB loan will help to ensure the security, safety and reliability of National Grid's gas distribution network which supplies gas to over 11 million customers in north London, the East Midlands, the West Midlands and the North West of England. The improvements will allow the company to maintain standards of service to existing customers and will facilitate the extension of capacity to provide for the growing customer-base.
The EIB-funded investment programme which National Grid is undertaking covers the three years to 31 March 2011. The bulk of the programme concerns the replacement of cast iron pipes with new polyethylene pipes which are more resistant and reliable. In addition, National Grid will use the EIB funds to implement reinforcement works across the 132,000km long pipeline network.
Environmental benefits resulting from the project are expected to be considerable, as the planned works should lead to a reduction in shrinkage - gas consumed within or lost from the transporter's system. National Grid has also committed to producing full studies of the impact of the investment programme on biodiversity and natural habitats. The EIB loan is conditional on National Grid's compliance to EU directives across this wide-reaching range of environmental factors. (O.L./transl.jl)