Liquefied gas firm posts €29m loss

ACCUMULATED LOSSES at the company seeking to build a €600 million liquefied natural gas import terminal in Co Kerry stood at €29 million at the end of last year.

This is shown in accounts filed recently by Shannon LNG Ltd and forms part of its €40 million-plus investment in the project to date.

However, a spokesman for Shannon LNG warned that changes in the tariff structure proposed by the Commission for Energy Regulation for importing gas through Bord Gais-owned interconnectors from the UK “threatens the commercial viability of the development”.

The project for a 257-acre site at Ballylongford in Co Kerry was announced in 2006 and permission obtained in 2008. It will create about 100 jobs.

Under the current tariff system, only the users of the interconnectors pay for the associated costs. The proposed structure would involve a portion of the costs of the interconnectors being levied on gas suppliers, such as Shannon LNG, who intend to bring gas to Ireland via alternative routes.

The spokesman said: “The company is not in a position to make an investment decision until this matter is clarified, once and for all, for the long-term. The company remains hopeful that the regulatory authorities will follow EU competition policy and law and allow Shannon LNG to compete on a level playing field in the wholesale gas market in Ireland.”

Shannon Foynes Port Company chairwoman Kay McGuinness said the project might be lost due to changes in the regulatory framework.“It would also be a significant setback to Ireland in terms of energy security as Shannon LNG plans to supply up to 45 per cent of Ireland’s gas requirements to the national grid and, therefore, reduce our dependency on the UK for our gas supplies,” she said.