LNG Shannon terminal, Ireland

The Shannon LNG terminal aims to facilitate the import of gas to Ireland, the UK and the rest of Europe. Opponents argue that building new fossil fuel infrastructure is not in line with COP21 commitments and directly pushes Europe into a carbon lock-in.


Description

The Shannon terminal would be the first LNG terminal to be built in Ireland.   LNG terminals allow gas to be transported overseas, as the gas is liquified, transported on cargoes and regasified at the point of arrival. The gas is then transported to consumers via pipelines.  The Shannon terminal is meant to facilitate gas imports from non-EU countries (such as the US) towards Ireland, the UK and the rest of Europe through the European network of gas pipelines.  Shannon LNT Ltd. was originally owned by Hess LNG (a subsidiary of the US multinational Hess Corporation). However, after spending more than €67m trying to progress the project, Hess decided to sell the terminal to a new owner in 2016, due to financial difficulties. The new owner is currently unknown (January 2017) [2].  Shannon terminal was granted planning permission in 2006. The terminal was approved a capacity to receive up to 1 billion cubic feet (bcf) per day and up to 4 LNG cargoes of 200,000 cubic metres capacity each.  The Shannon LNG Terminal would result in the current interconnector gas pipeline with the UK becoming redundant (a ‘stranded asset’). This is because the interconnector is owned by Ervia (formerly Bord Gais), a state-owned utility, meaning that the costs of maintaining it would continue to be borne by Irish customers [1]. As a result, the Commission for Energy Regulation (CER) ruled that Shannon LNG would have to contribute to the costs of the two new interconnecting pipes which transport gas between Ireland and the UK. Shannon LNG claimed the tariffs would cost them tens of millions and serve to subsidise their competition in the UK. Shannon LNG failed in a High Court action against the CER tariff scheme in December 2013.

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Basic Data
NameLNG Shannon terminal, Ireland
CountryIreland
ProvinceCounty Kerry
SiteSouth West Ireland – near Ballylongford and Tarbert
Accuracy of LocationHIGH local level
Source of Conflict
Type of Conflict (1st level)Fossil Fuels and Climate Justice/Energy
Type of Conflict (2nd level)Oil and gas exploration and extraction
Other
Transport infrastructure networks (roads, railways, hydroways, canals and pipelines)
Specific CommoditiesNatural Gas
Project Details and Actors
Project Detailso Total estimated cost EUR 600 million

o Date of Commissioning : 2018

o Export Capacity: Up to 1 billion cubic feet (bcf) per day approved

o Up to 4 LNG tanks of 200,000 cubic metres capacity each

o 26 kilometer pipeline and AGI (Above Ground Installation) connection to national gas grid approved

o 20 year exemption from regulated third party access from the Commission for Energy Regulation (CER) and the EU Commission

o Current owner unknown

oNOMINAL ANNUAL CAPACITY :

By 2018 : 2,70 billion m3/y

By 2019: 2,90 billion m3/y

By 2020: 3,4 billion m3/y

oLNG STORAGE CAPACITY :

By 2018 : 200.000 m3 LNG

By 2020 : 800.000 m3 LNG
Project Area (in hectares)114
Level of Investment (in USD)643 million USD
Type of PopulationRural
Start Date2006
Company Names or State EnterprisesShannon LNG Ltd.
Relevant government actorsEuropean Union - PCI list

Irish Government - Strategic Infrastructure Act

Amongst others.
Environmental justice organisations and other supportersSafety Before LNG : http://www.safetybeforelng.ie/
The Conflict and the Mobilization
Intensity of Conflict (at highest level)LOW (some local organising)
When did the mobilization beginPREVENTIVE resistance (precautionary phase)
Groups MobilizingInternational ejos
Local ejos
Local government/political parties
Neighbours/citizens/communities
Local scientists/professionals
Forms of MobilizationCreation of alternative reports/knowledge
Development of a network/collective action
Submitted a recommendation calling for the rejection of the planning application
Impacts
Environmental ImpactsVisible: Global warming
Potential: Biodiversity loss (wildlife, agro-diversity), Deforestation and loss of vegetation cover, Other Environmental impacts
Otherpotential gas leaks
Health ImpactsPotential: Accidents
Socio-economic ImpactsVisible: Loss of landscape/sense of place
Potential: Other socio-economic impacts
OtherPotential impacts on local livelihoods, increased energy poverty
Outcome
Project StatusUnknown
Pathways for conflict outcome / responseWithdrawal of company/investment
Project temporarily suspended
The project is not currently under construction, but neither is it "officially suspended". It is unclear who the new owner is and if enough financial resources will be pulled together to finalise the terminal. If resources are gathered and the project moves forward, it seems that a local resistance would pick up again.
Development of AlternativesThe construction seems to be currently on hold until enough financial resources are pulled together. There is no transparency on who is the current owner of the project and what their plans are.

A first step would be to remove the Shannon terminal from the PCI list, which is being reviewed in 2017. This would remove considerable political and public financial support for its construction.
Do you consider this as a success?Not Sure
Why? Explain briefly.The outcome of the project is still unknown. Until the project is officially abandoned, we cannot claim a victory.
Sources and Materials
References

Information on future LNG terminals capacities
[click to view]

E3G report on the resilience of european energy
[click to view]

Links

PCI list - technical details 1
[click to view]

PCI list - techincal details 2
[click to view]

[1] A political ecology of EU energy infrastructure: The Shannon LNG Terminal in Ireland. Patrick Bresnihan. 5 October 2016. **Very good article that gathers all the key information
[click to view]

[3] "Rabbitte statement a game changer, say LNG objectors". Irish Examiner. Thursday, December 08, 2011
[click to view]

[2] "US oil giant Hess sells troubled Irish gas terminal Shannon LNG" The Independent. Monday 30 January 2017
[click to view]

Media Links

Safety Before LNG website
[click to view]

Other Documents

Shannon terminal map of exact location
[click to view]

Other CommentsThe project will be evolving over the next months or years. It is important to keep fighting against its construction and to keep a sharp eye out for any future developments.
Meta Information
ContributorNoelie Audi-Dor ([email protected])
Last update06/02/2017
Comments