Shell Ireland gets injection of €125m for Corrib gas costs
Shell Ireland has got a fresh cash injection of €125 million from its parent to deal with the spiralling costs of the Corrib gas project. News of the funding came as Shell Ireland confirmed yesterday that work on the 5km on-shore subterranean gas pipeline would take another 15 months to complete.
The Corrib gas partners, Shell, Statoil and Canadian-owned Vermilion, are now 10 years behind the initial target to start generating revenues from the field. Shell now expects gas to flow in late 2014 or early 2015.
The cost of developing the field could be four times the initial estimate of €800 million at over €3 billion.
A spokeswoman for Shell EP Ireland Ltd said yesterday: “Tunnelling work commenced in recent weeks and is progressing well.”
Shell has confirmed that €250 million was spent on the project last year with the same due to be spent in 2013.
She said there would also be a significant amount of offshore work on the project this year, alongside work at the Bellanaboy Bridge gas terminal where some final construction activities will be completed.
Around 900 people are employed on the project at present. That number is expected to rise to more than 1,000 in the coming months.