Cyprian Brady (Dublin Central, Fianna Fail)
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This matter is in the names of Deputies Ferris and Deenihan and they will have two and a half minutes each

Martin Ferris (Kerry North, Sinn Fein)
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The Department of the Environment, Heritage and Local Government confirmed on 22 April this year that it had given preliminary approval for a foreshore licence for an LNG project in Tarbert, County Kerry, the application for which was made two years prior to that. The project was unveiled in 2006. It was held up during that period primarily by objections despite the fact that it was one of the first projects to be fast-tracked under the Planning and Development (Strategic Infrastructure) Act. It was the subject of two oral hearings by An Bord Pleanála, in both of which the decision was to give the project the go ahead. There is great concern about the delay regarding the foreshore licence. We understand it is due to legal details concerning the licence. We were told in April of this year that it would only take a few weeks to rectify the matter.

This project is of huge importance to north Kerry in particular, given that the rate of unemployment in this area as well as west Limerick at approximately 25% is twice the national average rate. It is hoped that this project will create approximately 400 jobs in the long term, which would be invaluable to this area and community. It is particularly important given that there has been a haemorrhage of jobs in Tralee and Listowel in north Kerry during the past seven or eight years. The workforce in that area was very dependent on the construction sector. That is the reason many young men got work in the construction sector but most of them are now unemployed.

We would welcome if the Minister of State could confirm that the legal difficulties delaying this project, which is what we understand are delaying it, would be dealt with speedily and that the project would be given the go ahead. I stress the importance of this project for north Kerry and west Limerick. Members of all parties are working collectively to create an environment to enable people to get back to work.

Jimmy Deenihan (Kerry North, Fine Gael)
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The Shannon LNG project was announced in May 2006. In September 2007 a planning application was lodged with An Bord Pleanála for the terminal. Permission was granted by the board in March 2008 even though this was a complex application which involved a protracted oral hearing. However, the process has not been as efficient in respect of the foreshore licence. Shannon LNG had its first meeting with the engineering division of the foreshore licence section of the Department of Agriculture, Fisheries and Food on 27 August 2007. It made a formal application for the licence on 2 April 2008, more than two years ago. Last April, the Minister confirmed in the House that he had signed off on the licence which would be sent to the Office of the Chief State Solicitor for final clearance. This has not happened to date.

This project is of significant national importance in terms of energy security and of great local importance in terms of providing jobs. As regards energy security, almost 60% of Ireland's electricity is generated using natural gas as fuel. There is a high level of dependence on gas imports from the United Kingdom, with some 90% of our gas being imported from that country. Moreover, the United Kingdom itself is projected to have to import up to 79% of its own gas requirements by 2016. It makes no sense to rely for our supplies on a country whose own resources are running out. Shannon LNG can provide security and diversity of supply and storage and thus reduce our dependence on one import pipeline from Scotland.

There is also a significant local employment aspect to this project. It is expected that it will provide 350 jobs at any one time over a four-year period. There will also be 200 jobs for more than six months relating to the construction of the pipeline. When the terminal is operational it will provide more than 100 jobs, including some in the broader economy. If there is a difficulty with regard to the foreshore licence, it must be communicated to Shannon LNG. If it is a case of expertise not being available to carry out a proper examination of the foreshore licence application, surely such expertise should be assigned to the project as a matter of urgency in view of its strategic importance.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I thank Deputies Ferris and Deenihan for raising this matter. I am very conscious of the economic potential of this project and I hope to throw some light on the matter in my reply. Following the enactment of the Foreshore and Dumping at Sea (Amendment) Act 2009, the Department of the Environment, Heritage and Local Government assumed responsibility in January 2010 for a range of foreshore functions including all foreshore energy-related developments.

The Shannon LNG proposal to construct a liquefied natural gas, LNG, regasification terminal on the Shannon Estuary between Tarbert and Ballylongford in County Kerry was one of a large number of projects for which foreshore applications had been submitted and on which decisions had not been finalised or conveyed to the project promoters prior to the transfer of functions. This project will involve the construction of an LNG marine import and regasification terminal, and a pipeline connection from the site to the Bord Gáis transmission system.

The four foreshore applications made by Shannon LNG in respect of the project were originally made to the Minister for Agriculture, Fisheries and Food in April 2008. The applications are for consents under the Foreshore Act to construct an LNG jetty that will be used for mooring and offloading LNG tankers; a materials handling jetty for the delivery of construction materials to the site by sea; a sea water intake and outfall required to circulate sea water through heat exchangers for use in the process of warming the LNG and converting it from liquid to gas; and a drainage outfall to discharge surface water, ground water, treated foul water, and used fire water from the proposed development.

Following submission of the applications, they were referred to the Department of Agriculture, Fisheries and Food's expert consultees, all of whom approved of the proposed developments subject to certain conditions. The applications were also subjected to the usual public consultation procedure, property valuation and deliberation by the marine licence vetting committee, which also recommended approval of the applications subject to the conditions specified by the expert consultees. All of the specified conditions to be attached to the consents have now been accepted by the applicant.

The consent process had not reached a conclusion when responsibility for the applications transferred into the Department of the Environment, Heritage and Local Government in January 2010. However, the Department moved to finalise the consent process as a matter of priority, which required advice from the Attorney General's office on a legal matter. Following receipt of this advice, the Minister, Deputy John Gormley, granted the consents on 20 April 2010. On 22 April 2010 the Department instructed the Chief State Solicitor's office to draft the necessary and complex legal documents required to give effect to the consents. Work has been ongoing on this issue and the CSSO has confirmed that the amended drafts of the documents will be available by 1 July 2010, allowing the draft leases and licences to issue to the applicant for their agreement.

Jimmy Deenihan (Kerry North, Fine Gael)
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It is nice to hear some positive news.