'Gas link can boost industry'
Wednesday February 24 2010
THE extension of the national gas grid into North Kerry is not viable at present but could become a reality if both Shannon LNG and Endesa achieve their planned projects in the Tarbert area, CEO of Bord Gais, John Mullins said this week.
Mr Mullins was one of a number of speakers who addressed upwards of 200 people at a public meeting organised by Jimmy Deenihan TD on energy in the region at Tarbert on Monday.
Speaking to The Kerryman, Mr Mullins described the landbank/Tarbert location as having considerable energy potential: "There are very few locations across the country at present in which you have two mainstream, large-scale projects like this planned."
Mr Mullins was referring to both Shannon LNG's plans to establish a massive liquid natural gas (LNG) terminal on the landbank and Endesa's plans to build a gas-fired electricity-generating plant adjacent to the former ESB power station at Tarbert Island.
"Ninety two per cent of our gas supply is currently piped in from Scotland so from the perspective of energy security, the Shannon LNG plant in particular would represent a massive asset. We very much welcome the project from the point of view of gas supply. It could supply half the country's gas needs by the middle of decade if all goes according to plan," he said.
Mr Mullins did question the possbility of establishing two connections to the grid at Foynes, suggesting that Endesa's gas-supply may be reliant on Shannon LNG.
However, with industries citing energy costs as a critical concern, Mr Mullins said the implications for the local economy would be considerable if both projects get off the ground.
"The extension of the national gas grid south into North Kerry is simply not viable at present, in terms of the amount of industrial and hotel customers in existence primarily. However, if both projects are established, the gas grid could well be extended... Where this has happened in other parts of the country... the benefits have been enormous. Some industries have reported energy savings of up to 30 per cent," he said.
Mr Mullins said, however, that building work would have to begin within the coming year if the region is to see both projects up and running by the middle of the decade.
Deputy Deenihan described the meeting as 'very positive' and constructive, pointing to the emphasis placed by Mr Mullins on the potential Shannon LNG's plant would have towards securing the national supply in particular.
- DONAL NOLAN dnolan@kerryman.ie
