LNG decision 'by end of year'
Wednesday March 10 2010
THE head of the American giant behind Shannon LNG has said their decision to finally invest in the proposed gas-import terminal may ' drag on' beyond the end of the year.
"A final investment decision could be right at the end of this year or early next year, but it could drag on further," Hess LNG CEO Gordon Shearer told analysts ICIS Heren - as quoted on their website.
Mr Shearer explained one of the major concerns for his company's decision was the ' third-party access arrangement', which relates to a guarantee of market for a specified amount of time to assure the company of recouping its investment.
"We are going to look at the third-party access arrangements because this defines the project parameters," Mr Shearer said. Shannon LNG has asked for a 30 to 35 year exemption from regulated third-party access, but the Commission for Energy Regulation has indicated it will offer a term capped at 25 years. CER, however, are expected to rule on this within the coming month.
The Tarbert Development Association is now calling for the appointment of a single figure or office to ensure that all the strands remaining in the process to bring LNG to the landbank are kept on track.
" We take Mr Shearer's comments positively and are both hopeful and confident it will go ahead. We badly want a ringmaster, as it were, to get it moving and ensure there is joined-up thinking between all the agencies on the matter as locals are very anxious at such a time of high-unemployment to see this project starting. We can think of no good reason why this cannot start in the near future," TDA member, John Fox, told The Kerryman.
Shannon Development Chairman and Kerry County Councillor, John Brassil, called as recently as last week for the Department of the Marine to speed up its decision on the granting of the foreshore licences required by Shannon LNG. Under the fast-track strategic infrastructure planning process, the company obtained the go-head for both the plant and pipeline in quick order, however the licensing issue continues to drag out.
Mr Fox said the community is also anxious to see positive news from the CER on access arrangements and called on all elected representatives to adopt a crossparty approach to ensuring the future of the plant. Meanwhile, a local group opposed to the plans, Safety Before LNG, continues to call for a strategic assessment of the entire estuary area affected by the plans.
- DONAL NOLAN dnolan@kerryman.ie
