A company planning a €600m gas project on the Shannon Estuary has said that major hurdles remain an obstacle to it proceeding with the development.
Shannon LNG, an Irish subsidiary of Hess Corporation, announced in 2006 that it was planning to develop a Liquefied Natural Gas terminal on a 257-acre site on the Shannon Estuary between Tarbert and Ballylongford in Co Kerry.
The company had stated that the project would provide up to 450 jobs during its construction.
However, the company today confirmed that it held meetings last week with the Minister for Finance, the Minister for Communication, Energy and Natural Resources and the Minister for Arts, Heritage and Gaeltacht Affairs to outline progress and to highlight what they described as ‘the hurdles that remain an obstacle to proceeding with the development'.
In a statement, Shannon LNG said that the Commission for Energy Regulation issued a consultation paper in January 2011 suggesting proposed new tariff schemes for the Bord Gáis Éireann owned gas interconnectors.
They added that they had made a detailed submission on the issue and that they are not in a position to make an investment decision until this issue is clarified for the long term.
One of the ministers that met the company last week said today that he is seriously concerned that the project could be lost as the company had indicated that they are losing patience.
Minister for Arts, Heritage and Gaeltacht Affairs Jimmy Deenihan called on the CER to clarify the situation as a matter of urgency as this was a strategically important project for the State.
A spokesman from the Commission for Energy Regulation said that they have supported the Shannon LNG project from the beginning.
He said the consultation paper sent to oil and gas companies earlier in the year concerns the second gas interconnector and how it will be paid for.
He added that Shannon LNG and a number of other companies have made submissions on the proposals and that the CER is now considering them.
He also said that the commission may seek a second round of consultation in the coming months.
A final decision is expected from the CER on the issue in the latter part of the year.
