Shannon LNG terminal refused as it is 'contrary to government policy' on fracked gas

The mayor of Kerry, Jim Finucane, said the board’s decision was 'incomprehensible'

The Ballylongford Tarbert landbank, the proposed location of Shannon LNG Ltd's LNG terminal. Picture: Domnick Walsh

An Bord Pleanála’s decision to refuse permission to build an Liquefied Natural Gas Terminal on the Shannon Estuary near Ballylongford in Kerry has been described is a major blow to Ireland’s future energy security.

The board said its majority 8:2 decision was based on government policy on the importation of fracked gas, that it would be inappropriate to permit or proceed with the development of any LNG terminals in Ireland pending the review of energy supply.

It said initial analysis in the, as yet unpublished review by the Department of the Environment, "does not support the development of a commercially operated floating LNG terminal".

The use of LNG as a primary fuel source for a power station is contrary to current government policy, the board said.

Fianna Fáil MEP Billy Kelleher said the decision is a blow to Ireland's energy security.

“It beggars belief that such an important project is once again being refused permission. There is a mountain of evidence to suggest the critical need for an LNG terminal and storage in Ireland. 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."

Mayor of Kerry, Jim Finucane said the board’s decision is "incomprehensible" and will impact on the economy of the whole country. 

He also slammed the decision not to publish the review on security of energy supply, before the An Bord Pleanala decision.

In 2021, Shannon LNG a subsidiary of New Fortress Energy, sought 10-year permission for a  €650 million development on 52ha on the southern shores of the Shannon Estuary, Ballylongford, around 5km west of Tarbert Co. Kerry.

Some 14ha would be taken up with a gas-powered power plant capable of 600 MW of electricity generation; a 120 MWh battery energy storage system; and an LNG terminal capable of offering up to 180,000m3 of LNG storage capacity and regasification capacity of up to 22.6 million standard cubic metres per day ) of natural gas, it was proposed.

A floating storage and regasification unit would be moored at the proposed terminal/jetty on a long-term basis and LNG would be transported to the terminal on LNG Carrier ships.

The liquid would be converted back into gas by a regasification process for transmission either to the national gas transmission network, or to the power plant.

Attempts to construct an LNG terminal at the deepwater site go back almost two decades.

The Ballylongford landbank was originally identified for industrial development as far back as the 1960s.

In 2007, permission was granted for an LNG regasification terminal but there have been legal challenges and extension of permission was quashed by the High Court in 2020.  Permission was also granted in 2009 for a 26km gas pipeline to connect Shannon LNG Terminal to the existing natural gas network west of Foynes, Co. Limerick to link up with the national gas networks.

Electricity connections also received permission.

In a note to its decision on Friday, the board said it also had concerns about an ‘absence of precise detail’ in relation to piling and a 'full clear assessment of all potential acoustic impacts on the natural condition of critical bottlenose dolphin habitat’ and how the terminal would impact their behaviour.