LAST UPDATE | 15 Sep 2023
AN BORD PLEANÁLA (ABP) has rejected an application for the construction of the Shannon liquefied natural gas (LNG) terminal in north Kerry.
US corporation New Fortress Energy had been seeking permission to build the facility on the Shannon Estuary, along with a 600 megawatt (MW) power plant with an integrated 120 MW battery storage facility.
In its reasons for rejecting the application, An Bord Pleanála cited a review of the security of energy supply of Ireland’s electricity and natural gas systems, which was initiated by the Department of the Environment in September last year.
The review has yet to be completed, but the initial analysis “does not support the development of a commercially operated Floating LNG floating storage regasifiction unit” (FSRU), APB’s direction states.
“Having regard to the nature and form of the proposed development which constitutes an overall integrated facility incorporating an LNG terminal and with a clear focus on the use of LNG as the primary fuel source for related elements such as the proposed power station, it is considered that the development at this time would be contrary to current government policy, and in the absence of such policy support, such development would be contrary to the proper planning and sustainable development of the area,” it states.
Taoiseach Leo Varadkar said this morning that he believed there “is a case” for gas storage in Ireland. The taoiseach acknowledged that he had not seen the ruling yet and would examine it.
“I know it’ll come as a disappointment to a lot of people in north Kerry in particular, because they were looking forward to that investment happening,” he said.
“I do think there is a case for having gas storage in Ireland, but again, we’ll have to look at the decision.”
Taoiseach reacts to Shannon LNG decision, says he’d like to understand why that's been made.
— Christina Finn (@christinafinn8) September 15, 2023
‘I know it'll come to disappointment to a lot of people in North Kerry… I do think there is a case for having gas storage in Ireland.’ pic.twitter.com/y0XalSGWXM
The government has previously acknowledged that following the depletion of the Corrib gas field, Ireland is expected to be dependent on imports for over 90% of gas by 2030.
In the Programme for Government, the three coalition parties came to some agreements on energy and LNG, including an assertion that it would not “make sense” to develop LNG terminals to import fracked gas.
In a statement following the decision, Fianna Fáil MEP Billy Kelleher said the decision is “extremely short sighted” and “a major blow” to Ireland’s future energy security.
“It beggars belief that such an important project is once again being refused permission,” he said.
“Ireland’s objective is to have the maximal amount of renewable energy possible. However, there will be days when the wind doesn’t blow and when we will need to burn gas if we are to keep our homes and businesses lit.”
Kelleher said Ireland is failing in terms of putting in place the required infrastructure to take advantage of wind energy capacity and questioned a lack of investment in port infrastructure.
“Why have we not rolled out a national anaerobic digestion strategy to deal with our slurry challenge and provide industry with green biogas? As a public representative, it is infuriating,” he continued.
“We cannot solely rely on imports from the UK and swindling supplies from the Corrib gas field. We need alternative supplies.”
He concluded by expressing his hope that New Fortress Energy “stays the course and continues the fight to secure permission”.
In contrast, head of policy in Friends of the Earth Jerry Mac Evilly said ABP’s refusal is “welcome, right, far-reaching and hard-fought”.
“It has been clear from the get-go that a long-lasting commercial LNG terminal would mean polluting gas for decades to come. We are finally seeing the decision-making of state bodies line up with our climate obligations,” he said.
He said the decision vindicates the tenacity of campaigners who have opposed LNG from the beginning. “Shannon LNG would have posed unacceptable risks to our climate and communities in Kerry and the US.
“Activists on both sides of the Atlantic have been tireless in their opposition, particularly given the risk that the terminal would allow for importation of polluting fracked gas, a form of fossil fuel that has devastated large parts of the US.”
He added that the decision is “just one step in getting Ireland off polluting fossil fuels”.
“Government must be clear in its opposition to fossil fuel infrastructure which risks locking Ireland into using polluting methane gas for decades to come.”
Leader of the Rural Independents Group, Mattie McGrath said that the decision was a “devastating blow” to the country’s energy security.
“An Bord Pleanála’s decision to deny the construction of an LNG terminal in County Kerry is a major blow to our energy security,” the Tipperary TD said.
“The board’s decision, with an 8:2 majority, is based entirely on government policy regarding the importation of fracked gas, deeming it inappropriate to permit any LNG terminals in Ireland until an energy supply review is complete.”
McGrath said he believes that the government’s energy policy, the main purpose of why the project was blocked, poses a “serious risk to our energy and national security”. He faulted the Green Party and said their policies have “left us perilously dependent on the UK for our gas supply”.
Green Party leader Eamon Ryan suggested that the focus should be on building facilities in the same area, that will supply renewable energy to the country and supply jobs to the local communities.
“I’m absolutely convinced that we would bring huge investment to the Kerry, Clare, Limerick shores to tap into that offshore wind – and we’re going to develop and build the industries in North Kerry, in West Limerick, in Clare, to use it,” Ryan said.
“The future is not investing in fossil fuels. At a time when the world is burning, we cannot expand our use of gas -we have to contract it,” he added.
Last year, a report conducted by UK-based consultancy firm Cambridge Economic Policy Associates (CEPA) outlined how LNG infrastructure could increase Ireland’s energy security.
The report pointed to LNG as an alternative source of natural gas to the volumes currently imported from the UK.
“In carrying out our assessment of this mitigation option, we modelled a floating LNG storage and regasification unit (FSRU) which would be used on a non-commercial, ‘strategic‘ basis,” the report said.
An FSRU can convert imported LNG back into a gaseous state and supply it directly to the onshore gas network.
“Developing an FSRU facility in Ireland avoids the need to develop large onshore LNG import infrastructure. As the FSRU is an operating ship, if and when the facility is no longer required, it can be transported to another location without leaving a large piece of stranded infrastructure behind,” the report said.
“We assume that the LNG FSRU would be leased for a limited period of time, as a medium-term solution to mitigate more immediate security of supply concerns.
“In combination with the designation of the FSRU as a ‘back-up’ facility, this helps to ensure that Ireland’s commitment to gas in the future remains aligned with the long-term decarbonisation targets set out in the Climate Action Plan and Programme for Government.”
The use of gas as an energy source and the expansion of LNG infrastructure is a point of contention in debates around renewable energy and energy security.
While not as heavy a polluter as oil or coal, gas is a fossil fuel that contributes to pushing global temperatures upwards, creating the climate crisis that is already having significant consequences in parts of the world and will grow worse if left unchecked.
On that basis, many experts, politicians and activists argue that it should be moved away from as quickly as possible in favour of renewable energy sources.
Others, however, say that for countries that still rely heavily on sources like coal, LNG is a relatively cleaner alternative that should be used while transitioning to a decarbonised energy sector.
With reporting from Lauren Boland and Muiris O’Cearbhaill
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