THE COMMISSION for Energy Regulation has approved the construction of a gas pipeline to serve the proposed import and re-gassification terminal for liquefied gas on the Shannon estuary in north Kerry. The 26km pipeline will connect the terminal with the national gas network near Foynes in Co Limerick.
This is considered to be the final major seal of approval for the estimated €500 million project to Shannon LNG, an Irish subsidiary of the global Hess energy corporation, on part of a Shannon Development-owned land bank.
The proposal was announced in May 2006 and has since been going through planning and consultation processes.
The commission’s decision to grant approval follows an oral hearing in May.
This was held after a request from the main objectors, Safety Before LNG.
Last year An Bord Pleanála ruled the terminal could not be constructed before the pipeline part of the project got approval. Separate, lengthy oral hearings by the planning board were held in Kerry into both the pipeline and the terminal in 2008 and both parts were approved.
The project is considered strategic infrastructure development which means it went directly to An Bord Pleanála for consideration.
The commision’s approval is seen as a major step in the creation of an energy hub on the south side of the Shannon Estuary.
It will also provide a ready supply source for the former ESB generating station at nearby Tarbert, now owned by Endessa, and is to be converted to a gas-powered facility.
The pipeline will have a capacity to transport one billion cubic feet of gas a day. Access for the pipeline from 72 landowners has already been secured.
The commission has set a number of conditions, including that the pipeline be constructed within five years from yesterday’s decision date.
Kerry North Fine Gael TD Jimmy Deenihan welcomed yesterday’s decision. “It will bring gas to Kerry for the first time. It is expected that approximately 200 jobs will be created for up to one year in the construction of the pipeline. It will also facilitate the conversion of Tarbert oil-burning station to gas for electricity generation,” he said.
A number of local organisations have also welcomed the decision, saying it will pave the way for much-needed jobs in the north Kerry area.