Safety Before LNG
Exposing the truth about the Hess 'Shannon LNG' project
Negative Effects on the Shannon Estuary
Nevada LNG Explosion

Press Releases

Press Release 25th May 2011: Hess LNG threats to pull out of Irish Shannon LNG project dismissed as an anti-competitive  charade to avoid €22.5 million annual levy at expense of Irish consumers; appeal of CER decision to the Competition Authority and EU on the cards.

Safety Before LNG condemns as daylight robbery plans to waive up to €22.5 million of an annual levy on Shannon LNG and will appeal any such decision to the Competition Authority and, if necessary, to the EU.

Safety Before LNG is also deeply concerned about what it perceives as biased political interference by Minister Jimmy Deenihan T.D. in the workings of the Commission for Energy Regulation (CER) in its setting of the contributions to be paid by Shannon LNG for the fixed costs of the gas interconnector from the UK. Mr. Deenihan says that Hess LNG should not have to pay any money to the CER for the interconnectors[1].

We are of the opinion that €22.5 million every year from the irish people should create more than 50 long-term jobs.

We ask the minister to explain why the country should give a massive subsidy of up to €450,000 per annum to each of the 50 long-term jobs at the proposed LNG terminal at Tarbert? We ask him to explain  if he is  lobbying the CER to give  a yearly subsidy of  up to €22.5 million euros to a  multinational company based in the offshore tax haven of the Cayman Islands or if he is acting in the national  interest?

Minister Deenihan told the Limerick  Leader newspaper on May 21st 2011:.
Asked if he thinks Shannon LNG should pay for interconnectors which it will not even
be using, he said: “I don’t think they should.”

Minister Deenihan is reported in  the Kerryman newspaper on May 18th 2011 as follows:
Minister Jimmy Deenihan is to face down CER officials in a meeting next week where
he will urge the authority to back down on its demands in the interest of creating vital
jobs for North Kerry and West Limerick.
"I will be laying it out that I don't agree with them. I think it will have the opposite affect
of protecting gas prices."

The CER is supposed to be an independent body and should be allowed to complete its work in a transparent manner without unfair political lobbying from politicians claiming to be acting in the common good. Jimmy Deenihan has indicated to the local media in recent weeks that he is responsible for arranging high-level meetings between the independent energy regulator, Shannon LNG and Ministers Rabbitte and Noonan as well as the Taoiseach Enda Kenny. We consider that he is happy for the Irish taxpayers to give away millions of euros to the benefit of a company based in the offshore tax haven of the Cayman Islands which will result in a huge increase in gas prices for the consumer and ask who does he really represent? It is not the taxpayer in any case. We feel that he is trying to pull the wool over the eyes of the Irish taxpayers and box other powerful politicians and statutory bodies into a corner they will not easily get out from if they publicly support the Shannon LNG giveaway without access to all the facts. All this intense lobbying is for 50 long-term jobs and at the cost of sterilising the rest of the Shannon Estuary from further sustainable development.

As long ago as October 17th 2008 [2] we highlighted to the CER the revelation in an internal CER memo which stated that the gas prices for the consumer would increase by about 15% if Corrib and Shannon LNG start production [3]. It has been reported in the media that the CER could charge Shannon LNG as much as €10 million a year [4]. It is also stated that Shannon LNG claims it can supply up to 45% of Irish gas needs and that the €50 million fixed annual cost of operation of the interconnector is currently footed by Bord Gáis, ESB and Airtricity [5].

Please note the following:

1. We believe that each energy supplier should incur a levy to cover the current €50 million fixed operating charges of the interconnector proportional to its share of the gas market in Ireland. In the case of Shannon LNG providing up to 45% of the country’s gas this would amount to a levy up to €22.5 million per year. This is equivalent to a state subsidy of €450,000 per year for each of the 50 long-term jobs to be created at the proposed plant if this levy is waived.

2. We believe that only a €10 million levy on Shannon LNG, representing less than half of its share of the actual operating costs would still be anti-competitive and force increased costs on the final consumer. We believe that this would amount to price fixing and an abuse of a dominant position – both of which are anti-competitive practices contrary to EU law. Shannon LNG will not charge less for gas than Bord Gáis would be forced to pay via the interconnector even though Bord Gáis would then have the added burden of the same fixed costs for the pipeline. This is equivalent to holding the country to ransom. If this proves to be the case then we will make a formal complaint to the Competition Authority of Ireland once a final CER decision on this matter is made public.

3. We have already highlighted the fact that any conversion of the Endesa power plant at Tarbert to gas with only a pipeline from the proposed LNG terminal would also hold power generation in the region hostage to Shannon LNG. This situation would be compounded if, as we already raised with the CER, Shannon LNG becomes pivotal supplier to two power stations controlling at least 700 megawattts in Tarbert by building its own gas-fired power plant adjacent to the proposed terminal and managing to jump the GATE grid access queue [6].

4. The Report of the Review Group on State Assets and Liabilities (the second McCarthy Report) of April 20th 2011 stated:

"if security of supply is the goal, policymakers and the regulator should facilitate the development of liquefied natural gas importation capacity in Ireland on a commercial basis” [7].
However, if Shannon LNG, along with Corrib, supplies more gas than the country requires then the direction of the interconnector changes; decoupling from the UK market would have happened and the country would then become even more of a hostage to Shannon LNG.

5. The Economic and Social Research Institute’s 2011 Energy Review stated that importing LNG

We believe therefore that any levy other than a levy based on market share amounts to state support and would therefore run contrary to the findings of the ESRI report.
6. The CER is quoted in the media as stating that “CER will seek to balance the interests of gas customers while, at the same time, keeping Ireland as an attractive location for gas producers. It has to be considered whether these companies [LNG and Shell] will use the interconnectors in the future, or if the other suppliers will incur extra costs by paying for the interconnectors.”  [9]
To this we state:
a. Regarding using the interconnectors in the future we believe that Shannon LNG would never be able to compete with the LNG suppliers to the two LNG terminals now operating at Milford Haven in Wales. This is because the extra charges the future probable UK importers of Irish LNG-sourced gas would have to pay to import via the interconnector could be avoided completely by directly purchasing from the LNG terminals at Milford Haven. The same would not be the case for indigenous Irish-sourced gas such as Corrib which would have no choice but to use the interconnectors.

b. The direction of the interconnector from the UK will therefore only ever be changed if more sustainable gas fields are discovered and developed in Ireland such as at Corrib. Otherwise the nation would become a hostage to Shannon LNG due to decoupling from the UK market.

c. In any case it is not unreasonable to charge Shannon LNG the levy now because any costs for the future use of the interconnector can be dealt with at that appropriate time, if it ever happens; the costs incurred by the consumer in the short to medium term must have a bearing on the CER decision on the levy to charge in the short to medium term.. Put in other words, if Corrib and LNG provide 99% of the country’s gas requirements, then who would be expected to pay the €50m fixed charges on the interconnector in order to import the final 1% of gas via the pipeline from the UK? Would Bord Gáis be expected to pay the annual €50m and pass the cost onto the consumer and allow Corrib and Shannon LNG walk away with a savings of €50m every year, without even considering the higher prices they will subsequently be able to charge Bord Gáis as a result?

d. Shannon LNG would not be an indigenous gas producer as the CER spokesperson seems to imply. Unlike Shell at Corrib, Shannon LNG would be an importer of foreign gas and is therefore not a gas producer. They are only merchants seeking a niche in the Irish market with government support, thank you very much.

7. We do not trust the bona fides of Hess LNG which has never managed to develop an LNG regasification terminal anywhere in the world. It is getting bogged down in two highly contentious and increasingly acrimonious planning applications in the USA at Crown Landing in New Jersey on the Delaware River [10] and at Weavers Cove at Fall River in Massachusetts on the Taunton River  [11] . It is now willing to play strong arm tactics when necessary by threatening to pull out of Ireland if it does not get its way with the CER levy. We remind the CER that it was a legal pre-condition for the CER in giving a licence to Shannon LNG to construct an LNG pipeline on December 8th 2009 that Shannon LNG was capable of paying any levy to the CER (criterion G) [12]. We ask that if this is how Shannon LNG acts before it gets a licence from the CER how will it act if it finally starts production and obtains an abusive dominant position in the Irish gas market? We say that Shannon LNG is yet one more company who, with the help of biased political lobbying, is intent on stitching up the Irish taxpayer in what is another all-too-familiar round of horse trading at the Irish taxpayer‘s expense.

8. Could these “current delays” as they are reported as in the media have been avoided? We have continuously argued that the lack of a Strategic Environmental Assessment (SEA) for the Shannon Estuary is at the root of the problem due to the fact that issues which would have been highlighted at the early SEA stage are now only being assessed. These come under the heading of effects on Material Assets which would have been considered in any SEA. The EU Commission has already agreed with our assessment and we believe that this message is now finally hitting home in the wider estuary region. We believe that the new inter-jurisdictional “Strategic Integrated Framework Plan” for the entire Estuary being spearheaded by Clare County Council should be prioritised as it seeks to investigate and analyse competing alternatives for the sustainable development of the estuary. We now ask the CER to go back to basics in order to strategically assess the Shannon LNG project in the light of the Clare County Development Plan 2011-17 Strategic Integrated Framework Plan objective which states:

CDP 14.2 Development Plan Objective: Strategic Integrated Framework Plan
It is an objective of Clare County Council:
a) To facilitate the carrying out of an inter-jurisdictional Strategic Integrated Framework Plan (SIFP) for the Shannon Estuary in conjunction with the other relevant local authorities and agencies, in accordance with the SEA Directive and Habitats Directive. The SIFP will identify both the nature of the development, economic growth and employment that can be sustainably accommodated within the Shannon Estuary and the location of the sites that could accommodate specific types of development. The SIFP will ensure that the habitat status of the areas within the Estuary designated as Natura 2000 or other environmentally sensitive sites would not be reduced as a result of the short-term or long-term impact of such developments, considering alternatives, cumulative impact, or impact in-combination with other proposed or planned developments outside the area of the Estuary. [13] ”

1. Limerick Leader - May 21st 2011.
4   “The Kerryman” newspaper, Wednesday May 18th 2011
5   “Sunday Business Post” , May 15th 2011
6 There is a Plan for an intensified electricity-generation hub on the Estuary given the proposed minimum 230 MW gas-fired power generation plan proposed by Shannon LNG adjacent to the proposed LNG terminal at Tarbert - separate to the proposed 450 MW Endesa plant at Tarbert island - under the name “Ballylongford Electricity Company” -
8 , April 2011 page 42
9 “Sunday Business Post” , May 15th 2011
10 (LNG World News, May 6th 2011 - “USA: Hess delays Crown Landing LNG Project”
11 (LNG World News, August 30th, 2010 - “USA: Weaver’s Cove Not giving up on Fall River LNG Project)
13  Clare County Development  Plan 2011-17 Environmental Report

Media reporting on the issue:

The Sunday Independent reported it as follows on August 24th, 2008
That's gas -- bills up 15% after Corrib field opens
Less fuel imported but higher costs mean prices will soar again

Sunday August 24 2008
ONCE gas production comes on stream from the Corrib Gas fields off Belmullet, Co
Mayo, next year the price of gas to Irish users is set to shoot up by 15 per cent.
Consumers are already facing a 20 per cent increase in gas bills from September.
However, an internal memo from the energy regulator warns that the price will soar even
higher once production starts at the Corrib gas fields next winter.
The memo attributes the rising cost of gas to the declining use of two inter-connectors
linking the UK's gas supplies with Ireland.
At the moment, Ireland gets 90 per cent of its gas from the UK. Once production starts at
Corrib and a second producer, Shannon LNG, starts distributing gas from 2012, less gas
will be imported.
The inter-connectors, which must meet fixed costs, will consequently become more
The energy regulator is currently considering whether the consumer shoulder the burden
of that extra cost -- which is estimated to represent a 15 per cent rise in the price of gas.
Consumers currently foot the bill for the inter-connectors, with the price built into the
twice-monthly gas bills. Bord Gáis invested in two inter-connectors in Scotland to import
gas from the UK when Irish gas supplies started running out. The company passed the
cost on to its customers.
A memo, circulated in July, sets out several options under consideration.
The first is a "do nothing" scenario, in which the price of gas would increase
dramatically and consumers would shoulder the increased gas prices. A second option is
for the Government to cover the additional cost to Bord Gáis, thereby protecting the
consumer from an immediate price rise.
Analysis and comment PAGES 20, 21, 23
A third is to allow the gas suppliers to share the extra cost between them. Gas suppliers
are likely to resist this option, however.
Ireland is anxious to decrease dependence on UK gas supplies by generating its own
supply. That means encouraging production in the Irish market. Charging gas suppliers
for the cost of the inter-connector could be seen as a deterrent.
The supply of indigenous gas is unlikely to mean cheaper prices for consumers. Shell and
Statoil are scheduled to begin producing gas from the Corrib field off the west coast in
2009. Shannon LNG is due to come on stream in 2012. That company will ship liquefied
gas to Ireland and restore to its gaseous state for distribution on the Irish network.
According to the memo, Corrib and Shannon will not provide enough gas to supply the
Irish market so gas will still be imported from the UK and priced at world market levels.
The indigenous gas producers are likely to set their prices at those market level, even
though their costs may be lower.
Simon Coveney, the Fine Gael spokesman on energy, said the regulator's job is
ultimately to protect the consumer and businesses by ensuring that gas is provided as
cheaply as possible.
"The onus is on the regulator to ensure there is a pricing structure in place so that
Ireland's consumers benefit from Ireland producing it's own gas and not having the extra
costs associated with importing gas," he said.
"What is required is a new formula for regulating gas prices in Ireland that can
differentiate between imported gas and gas produced off the coast of Ireland."

The Sunday Business Post:
Major Shannon energy project is under threat
15 May 2011 By Nicola Cooke
Industry Correspondent A €600 million energy project on the Shannon Estuary which
could create 450 jobs is under threat.
Shannon LNG has already invested €50 million in a project to construct a liquefied natural
gas regasification terminal between Tarbert and Ballylongford in Co Kerry.
An Irish subsidiary of Hess LNG, the company initiated the planning application in 2006,
and had secured an onshore licence for a pipe and planning permission from An Bord
But it is now believed Shannon LNG is considering not proceeding with the project, or
moving it to Britain as a result of extra costs it might be forced to pay for gas
The company wants to import frozen natural gas, mainly from the Middle East, and then
process it at the terminal here. It claims it can supply up to 45 per cent of Irish gas needs,
and the pipe would connect to the national grid.
The company had hoped to begin construction work on the terminal this year, creating
450 jobs during construction and eventually 100 full-time jobs.
CER announced a public consultation last January on the regulatory treatment of Bord
Gáis’s two interconnectors to Scotland. It is now considering whether Shannon LNG and
other processors such as Shell (at the Corrib gas field off Mayo) should have to pay some
of the operational costs of the interconnector pipes.
The €50 million annual cost of operation is currently footed by Bord Gáis, ESB and
Hess LNG does not believe it should have to pay a significant sum towards
interconnectors that it will not be using. Shannon LNG representatives have met the CER
twice since the consultation process began to express these opinions, and the CER has
granted the company an extra month for a submission to the process.

Shannon Foynes Port Company (SFPC), which would benefit economically from the
shipping fees Shannon LNG would have to pay to use the port and estuary, described the
delay in sanctioning the facility as unacceptable.
‘‘All three consents have been granted but, to our dismay, a regulatory review could delay
the start of the project for another year. If this review is not expedited, this massive
investment could simply go to another nation with a more streamlined regulatory and
planning framework," port chairwoman Kay McGuinness said.
A CER spokesman said that it welcomed and supported the LNG project, and a final
decision was expected in September.
‘‘CER will seek to balance the interests of gas customers while, at the same time, keeping
Ireland as an attractive location for gas producers.
It has to be considered whether these companies [LNG and Shell] will use the
interconnectors in the future, or if the other suppliers will incur extra costs by paying for
the interconnectors."

Limerick Leader - May 7th 2011:
Red tape puts 450-job LNG pipeline plan in jeopardy
Port company boss describes project delays as ‘bizarre’
Nick Rabbits
A MASSIVE gas-line project which could provide 450 jobs for the West could be lost if
the regulator delays its decision on the project, it has been warned.
Arts Minister Jimmy Deenihan has told the Limerick Leader that Shannon LNG’s top
brass have indicated to him that if the Commission for Energy Regulation (CER) impose
any major delay on making a decision in its €600m plans to open a liquid natural gas
terminal on the Shannon Estuary, near Ballylongford, they “may consider concentrating
their money and efforts elsewhere.”
His fears have been reflected by the chairperson of the Shannon Foynes Port Company,
Kay McGuinness, who described the delays to the project, which will provide 40
permanent jobs at completion as “bizarre” - and said that in other territories, the project
could have been delivered in half the time.
Although Shannon LNG’s parent company Hess has already invested more than €50m in
planning and preparation for the project, the intervention of the Commission could set the
project back for yet another year.
Now, talks are set to take place between management at Hess and Taoiseach Enda Kenny
in a bid to get the project - which has been in planning for over five years - moving.
Their case has been strengthened by two key reports which have come before Government
recommending the immediate start to the project, which will supply up to 45 per cent of
the nation’s gas requirements.
The Economic and Social Research Institute’s energy review, and the Report of the
Review Group on State Assets and Liabilities have both recommended the scheme be
Due to the nature of the project, the project has to go through three separate approval
processes - basic planning permission, the obtaining of a foreshore licence, and a licence
from the Commission for Energy Regulation.
Two out of these three stages have been completed, but it is now feared Hess could run
out of patience and quit West Limerick/North Kerry.
While no-one from the company would comment this Wednesday, North Kerry Fine Gael
Deputy Deenihan said: “The destiny of this project is in the regulators hands now. All
LNG want is a quick decision, and if this is not right for them, they will consider
concentrating their efforts and money elsewhere.”
Representatives of Shannon LNG met with Energy Minister Pat Rabbitte and Finance
Minister Michael Noonan last Wednesday. Minister Deenihan said he cannot directly
intervene with the Commission, because this process has to be independent of political
But the delays have angered Ms McGuinness, who called on the government to make an
attempt to fast-track the process.
“It is incredible to think that this potential €1bn investment is in the planning/licensing
process for over five years. In the UK, for example, this would be done in half the time, if
not less. Our regulatory and marine planning system is simply too slow. The concern is
that if this review is not expedited, this massive investment will simply to go another
nation with a more streamlined regulatory and marine planning framework,” she said.
If this was to happen, Minister Deenian said: “We will never get a chance in the region to
get a project like this again on the Shannon Estuary. We will never get this opportunity
again in our lifetime. We cannot afford to make any mistakes.”

Limerick Leader - May 21st 2011:
THERE are major fears over the future of a €600m gas-line project
which could provide more than 450 jobs in Tarbert.
Although the Commission for Energy Regulation could rule on Shannon LNG’s plans for
a liquefied natural gas terminal on the Shannon Estuary as early as September, a
requirement to pay for gas interconnectors the firm may not even use could see the
company quitting the area.
Sources close to Shannon LNG’s parent company Hess have indicated they may cut their
losses here, and proceed with similar projects in the United Kingdom, if more problems
are thrown in their way.
The company wants to import frozen natural gas, mainly from the Middle East, and then
process it in West Limerick/North Kerry.
The pioneering technology could see the company supply 45 per cent of Ireland’s gas
needs, with the pipe connected to the national grid.
But since plans for the facility were unveiled in 2006, the project has been beset with
delays - and in that time Shannon LNG has invested €50m in planning and preparation
with no return.
Now, the company is believed to be considering cutting its losses here, with Arts Minister
and Local TD Jimmy Deenihan set to hold crunch talks next week with the
Commission for Energy Regulation. Taoiseach Enda Kenny is also acutely aware of
the importance of this project, and will meet company representatives next month.
The scheme is currently before the Commission for Energy Regulation. One of the major
sticking points is whether Shannon LNG has to help fund two interconnnectors linking the
estuary to Scotland.
The €50m annual cost of the pipeline’s operation is currently footed by its users Bord
gáis, and Airtricity. Hess LNG does not believe it should have to pay towards
interconnectors it will not even be using.
Representatives of the firm have already met the regulator to state their case, and are in
the process of preparing an official submission.
This could prove to be the one thing which could see the massive investment lost.
Minister Deenihan says if Tarbert misses out on the investment - which will create 400
jobs over an 18 month construction phase and then another 100 permanent jobs - the way
the planning process in this country is going to require examining.
To get to a stage where it can begin operation, Shannon LNG will have had to go through
three planning processes: basic planning permission, a foreshore licence, and the approval
of the energy regulator.
“If we lose this project, there will be a major issue over the role of the regulator and how
it was established. You cannot lose a project with this kind of investment, in an area which
has not seen investment for years. It just does not make sense. This is the only real
tangible project I have seen for the Shannon Estuary since I came into politics nearly eight
years ago No other company has spent €50m advancing their project and having a whole
team working on it for the last five years, ” Minister Deenihan told the Leader.
Asked if he thinks Shannon LNG should pay for interconnectors which it will not even
be using, he said: “I don’t think they should.”
County Limerick TD Patrick O’Donovan said he thinks it is “unfair” the issue over
whether Hess partly pays for the interconnector has been brought up now.
He called on the government to resist any instruction by the regulator to insist LNG pays
for the interconnector. However, the regulator has to be seen to operate independently
from political influence.
“I don’t think it is fair issues have been brought to the table that were not there while this
project was being designed. It is unfair on the basis of the money which has been spent on
the project so far and the commitment given by the company. If the agencies of the state
are prepared to move the goalposts, I think it would be very unfair, and its something the
government has to resist, ” Deputy O’Donovan said.
He said the Shannon LNG project is the biggest development in the West since the advent
of Aughinish Alumina over 30 years ago: “We are a small peripheral country at the end of
a pipe which can be turned off at the drop of a hat. It is far too important to be tinkered
around at the edges with. It needs to be delivered, and delivered in as short a time frame
as possible.”
Deputy Dan Neville added: “It’s amazing the way our system works. The common good
seems to take second place to procedures and bureaucracy. I can feel this frustration
myself. Having thought things were going to plan, it’s now very frustrating to see this is
not the case.”
A spokesperson for the Commission for Energy Regulation insisted they welcomed the
LNG project, and stressed a final decision is due in September.
“CER will seek to balance the interests of gas customers while at the same time, keeping
Ireland as an attractive location for gas producers. It has to be considered whether these
companies [LNG] will use the interconnectors in the future or if the other suppliers will
incur extra costs by paying for the interconnectors, ” the spokesperson said.

Radio Kerry
19 May 2011
Minister Deenihan organises for President of Shannon LNG’s parent
company to meet Taoiseach

Minister Jimmy Deenihan has organised for the President of Hess LNG, the parent
company of Shannon LNG, to travel to Ireland to meet with the Taoiseach in the coming
The Kerry minister will also attend this meeting to discuss a proposed new charge by the
Commission for Energy Regulation.
Shannon LNG plans to develop a 500 million euro liquefied natural gas terminal on the
Tarbert Ballylongford landbank.
Last week the Commission for Energy Regulation released a consultation paper
suggesting a new tariff scheme for gas inter-connectors owned by Bord Gáis.
Minister Jimmy Deenihan says Shannon LNG will withdraw its proposed terminal from the
Tarbert Ballylongford landbank, if it has to pay a tariff for rival gas inter-connectors,
which it won't use.
The company also says it can't make an investment decision until the issue is clarified by
the Commission.
Shannon LNG, an Irish subsidiary of Hess LNG, announced in 2006 it was planning to
develop the terminal on the Shannon Estuary providing up to 450 jobs during
construction, and 50 long-term posts.
As well as meeting the President of Hess LNG and the Taoiseach, Minister Jimmy
Deenihan will hold talks with the Commission for Energy Regulation next week about the
He's already facilitated a meeting between Shannon LNG and the Energy Minister Pat

The Kerryman newspaper:
North Kerry set to lose promised jobs
Wednesday May 18 2011
SHANNON LNG will pull out of its planned multi million euro Ballylongford landbank
project, with the loss of hundreds of jobs for North Kerry, if it is hit with massive charges
that are being threatened by the Commissioner for Energy Regulation (CER).Local
supporters are frustrated that the project, which promises 450 jobs in the short term, has
already been massively delayed by red tape.
Now Shannon LNG is on the brink of abandoning the longawaited development after
learning that it could be charged a possible €10 million a year to use the national gas
pipeline network.
The CER has told Shannon LNG it will have to pay to use the gas pipeline that connects
Ireland to the UK. The cost could be as much as €10 million a year. Shannon LNG and its
parent company Hess LNG see this charge as unsustainable and are considering the future
of the project .
Minister Jimmy Deenihan is to face down CER officials in a meeting next week where
he will urge the authority to back down on its demands in the interest of creating vital
jobs for North Kerry and West Limerick.
"I will be laying it out that I don't agree with them. I think it will have the opposite affect
of protecting gas prices. If Shannon LNG get the plant up and operating it will have the
effect of reducing energy prices, including electricity. I would hope that this will be
resolved for the sake of everyone.
"It is very serious as this is the only real job prospect for North Kerry and West Limerick
and there is a committment to pay €20 million to Shannon Development for the land.
These people are totally committed to the project and all they want is to compete on the
market to bring down the price of gas," Minister Deenihan said.
Contrary to some reports, Hess LNG, which has already invested up to €50 million in
Kerry, is not considering moving the project to the UK.
Minister Deenihan has arranged for the company to meet with Energy Minister Pat
Rabbitte in the coming week to discuss their concerns.

“Kerry’s Eye” newspaper, 19th May 2011.
Gas terminal delay to be resolved ‘by September’

By Owen O’Shea.
The regulatory review which is stalling the development of the new €500m liquefied
natural gas terminal in Tarbert is expected to be completed by September, Kerry’s Eye
Two weeks ago, a Commission for Energy Regulation review of interconnector tarriffs
was announced prompting fears that the Shannon LNG terminal would be further stalled
by up to a year.
Cost implications for the project are expected to arise as a result of the CER review.
It is also understood that the Minister for Communications and Natural Resources, Pat
Rabbitte, is to meet shortly with the head of the US company Hess, to discuss the project.
Shannon LNG is a wholly-owned Irish subsidiary of Hess LNG Limited.
Minister Jimmy Deenihan said this week he was optimistic that the project can proceed
once the regulatory review is completed.
“Minister Pat Rabbitte has met with Paddy Power of LNG and the regulator and I
believe that it will not be the end of the year before this is resolved,” said Deputy
The latest delays have been criticised by the Shannon-Foynes company as “bizarre”.
The Shannon LNG terminal was first granted planning permission in April 2008 and will
create 400 jobs in construction and 100 jobs on-site.