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 June 30th 2012: As Irish Energy Regulator delivers killer blow to Hess LNG/Shannon LNG project, Irish  politicians and officials are accused of misleading the general public on the hidden Shannon LNG subsidy loophole.

- Irish Energy Regulator outlaws monopoly price fixing loophole in the Irish gas market, delivering a killer blow to the proposed Hess/LNG/Shannon LNG project.

- Irish politicians and officials accused of misleading the general public by hiding the fact that Irish consumers would have had to subsidise the Shannon LNG project to the tune of up to €50 million per year.

In a victory for open competition and consumer price protection, the Commission for Energy Regulation (CER), with full support from the European Commission (DG Energy), ruled on June 29th, 2012 that all gas suppliers in Ireland must contribute to the cost of the interconnector pipeline from Britain to Ireland, whether they use it or not.

Shannon LNG's predatorial business plan was based on selling gas for slightly less than the benchmark interconnector price which would have given it a dominant market position. However, this would have caused an increase in consumer prices  as decreasing numbers of interconnector customers would be forced to pay more to cover the €50 million annual fixed cost of the pipeline.

If the Shannon LNG project goes ahead then it will no longer be with the certainty of any market share they wish. The closing of the price-distortion loophole by the Energy Regualtor will now almost certainly see the end of the predatorial Shannon LNG project which had been hoping to take advantage of a weakness in the Irish gas pricing system.
The CER decision has finally forced everyone to recognise that Ireland and the UK is the one gas market and that there is no such thing as 'Irish' gas.

'Safety Before LNG' accuses all the local politicians and officials who lobbied for the Shannon LNG price-fixing project with total disregard for its negative safety, environmental and strategic effects,
of misleading the general public by hiding the fact that Irish consumers would have had to subsidise the Shannon LNG project to the tune of up to €50 million per year. These pro LNG politicians and officials acted with total disregard for their obligation to behave objectively and in a manner which is consistent with their roles as public representatives and legislators. Stupidity and the inability to understand basic economic facts is not an excuse for the disgraceful lobbying by local politicians and officials who would have gladly seen an offshore company rob Irish consumers of as much as an extra €50 million per year at a time of increasing fuel poverty.
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. The EU Commission has already agreed with our assessment in an interim ruling on the matter 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, a world-class facility, which would have been entirely sterilised by the Shannon LNG project - a dangerous and dirty project at the mouth of the Shannon Estuary.



Notes to the Editor:

1. To view the full CER decision paper on  the Regulatory Treatment of the BGE gas interconnectors see: