Brendan Griffin (Kerry South, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for allowing me table this matter on the Shannon LNG project. This proposed project is hugely important for the Ballylongford area of north Kerry, but it also has significant positive and economic implications for the entire south-west region. The proposed project is for a liquified natural gas terminal on the Shannon Estuary, near Ballylongford and it is to be operated by Shannon LNG, which is owned by Hess Corporation, and Poten & Partners, a 50:50 partnership.

Shannon LNG secured planning permission originally in 2008 to build on the 287 acre site at Ballylongford and it was to take four years to complete the project, which would be valued at €600 million. A €400 million power plant was also to be built on the site. This would be a total investment of €1 billion, with the potential for 650 construction jobs and from 50 to 100 permanent jobs. This would be a game changer for the region and we are crying out for such a project.

After years of delay, in 2011 the Commission for Energy Regulation, CER, pointed out that Shannon LNG would have to pay €50 million a year towards the use of interconnecting pipes that bring gas between the United Kingdom and Ireland, despite the fact the company has no plans to use that infrastructure. Bord Gáis is the main user of that infrastructure. On 11 December, the courts found against the appeal made in the judicial review by Shannon LNG against the tariff of €50 million per annum. That decision has completely jeopardised the future of the Shannon LNG project. The company has lost a huge amount of money, losing €51 million last year, which was an increase of €20 million on the previous year's losses. These losses have occurred before anything at all has been done with the project. Incidentally, a few days after the judicial decision on Shannon LNG, the sale of Bord Gáis went through.

Policy should incentivise and enable efficient new entry into the gas market here. It should not preclude new entry. If we want to become the best small country in the world to do business, the experience of Shannon LNG is not one we should hold up as a shining example. The idea of levying on a company €50 million to use infrastructure it does not intend to use is like charging me a levy for the use of the M50 while driving around the Ring of Kerry. This is not a sensible proposal for a project that will cost €1 billion in investment in the south-west region and provide hundreds of much needed jobs.

The Minister told me on numerous occasions, both orally in the Chamber and in writing, that it is not his place to give policy direction in individual cases and I accept that. However, the Minister has within his powers the scope to give general policy direction. That is where he could show some flexibility. I ask him to re-examine this issue and find a way to accommodate this huge investment in jobs and the south-west region. I call on the Minister to propose a plan to deal with this. Has he a plan for how to bring this project to fruition and how to reward this company for having faith in Ireland? Has he a plan to ensure that we can hold this project up as an example of how a company can overcome red tape and bureaucracy and do business here? I would appreciate hearing whether the Minister has a plan for that.

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