The company behind plans for a liquefied natural gas terminal in North Kerry is to receive state funding to provide electricity for 10 years.
Shannon LNG Ltd, a subsidiary of New Fortress Energy, applied to An Bórd Pleanála for permission to build a power plant on the Tarbert/Ballylongford landbank in August 2021.
The planning application proposes to develop a liquefied natural gas terminal, including a floating storage and regasification unit and onshore receiving facilities on the 52-hectare site in North Kerry.
Eirgrid has now confirmed the company will receive state funding to provide electricity to the grid for a period of 10 years starting in 2026, should the LNG terminal get planning permission.
Planning was first granted 16 years ago for a liquefied natural gas terminal on the Tarbert Ballylongford landbank, but this permission expired.
This followed delays to the project relating to regulatory matters, planning objections, and a controversy over the funding of interconnector pipes from the UK to transport gas.
Shannon LNG has said that the proposed development is not dependent on fracked gas, that it is confident that it can source gas from non-fracked sources and that most LNG in the world is not sourced from fracked gas.
Opponents to Shannon LNG say gas is a fossil fuel, would increase carbon emissions and would use fracked gas from the US.
The company says the proposed development does not increase gas use or ‘lock-in’ natural gas and that an LNG terminal is essential to provide security of energy supply.
The latest planning application by Shannon LNG Ltd is still being considered by An Bórd Pleanála, and no date is set for a decision.
At Eirgrid’s latest auction for electricity providers to the grid, Shannon LNG Ltd was awarded funding to provide electricity to the state for 10 years.
During these auctions, electricity generators and demand response providers compete to offer their capacity to the market.
Two gas turbines are to provide 176 Megawatts each from its North Kerry LNG terminal, at a cost of €140,000 per Megawatt, from 2026 to 2036.
The company qualified for the auction on the basis that it would commence construction on June 1st this year, that the network connection would be completed on 1st March 2026, and the terminal would begin supplying energy to the network on 1st May 2026.
The results of the auction do not mean that the proposed LNG terminal has received planning permission, but the company has Eirgrid as a customer for its electricity if it obtains planning permission.
Kerry Independent TD Michael Healy-Rae has welcomed this development, adding he’s been a lifelong supporter of the LNG terminal.
Deputy Danny Healy-Rae has also welcomed the announcement, while Fine Gael councillor Michael Foley says it shows the state has confidence in the company.
CLARIFICATION April 13th, 2023
We’ve been asked by Safety Before LNG to clarify a reference made in the above news story on April 5th which said that Shannon LNG said no fracked gas would be used in the proposed LNG terminal in Tarbert.
It was Radio Kerry’s understanding that the company was claiming it would not use fracked gas when it stated that "the proposed development is not dependent on fracked gas", that "it is confident that it can source gas from non-fracked sources", and that "most LNG in the world is not sourced from fracked gas.”
However, 'Safety Before LNG' has asked that we point out that this is not a copper-fastened guarantee that fracked gas would not be used. Shannon LNG also officially submitted to An Bord Pleanála in its planning application that “it is neither necessary nor appropriate to include particulars of any one place where source gas might be extracted.”
In January, the Independent Press Ombudsman ruled that in fact “the company did not assure that it would not import gas from fracking in the US”, quoting in its official decision the explanation that “saying you can do something is not the same as saying you will do something.”
