Cheaper energy, job creation and the diversity and security of energy supply are being put at risk by the Commission for Energy Regulation, according to a US energy firm.
Paddy Power, chief executive of US-owned Shannon LNG, said a €1 billion investment for the Shannon estuary was under threat because of the commission’s policies.
Planning permission was secured by Shannon LNG for a €600 million liquefied gas terminal in 2008 and the firm is also planning a €400 million combined heat power plant at Ballylongford, Co Kerry.
The LNG project would provide 650 jobs during the four-year construction phase, with 50 permanent jobs thereafter.
However, the regulator’s proposal that all gas suppliers, including Shannon LNG, pay for the State’s two interconnectors – that supply 95 per cent of the State’s gas – has placed the project in doubt.
Mr Power said the regulator’s new tariff structure for gas interconnectors could cost Shannon LNG €85 million per annum “and is not a situation that we could live with”.
