Page 5 - GLNG Week 43

GLNG COMMENTARY GLNG
back-up supply according to Bruton.
The Climate Change Advisory Council sup- ports this view, saying that continued explora- tion and production of offshore gas reserves could be consistent with a transition to a
low-carbon future.
However, vociferous opposition to shale gas
in Europe has already contributed to a number of upstream projects being cancelled, and it would not be surprising if it were to affect downstream developments such as LNG terminals as well. The Irish government will have to proceed care- fully with Shannon LNG if it wishes to minimise roadblocks caused by opposition to the project. Public support for the project could also be won through job creation and a boost to the local economy, though this will need to be balanced against environmental concerns.
Bruton has asked the European Commission if a review into the implications of importing LNG into the EU has been carried out “in terms of a sustainable, secure and competitive Euro- pean energy policy; and if not, that it should be undertaken”. He said this included LNG that uses both conventional and unconventional gas as feedstock. Defenders of the project, however, have noted that there is no difference, and no way of telling the origin of the gas with cargoes that are, for example, traded on the spot market.
The Irish Times noted that the commission has confirmed inclusion on the PCI list “does not mean the project has at that time complied with all environmental obligations under EU
legislation”. But the project will need to comply with all relevant legislation as it moves forward.
Slow process
Shannon LNG has been through several own- ership changes as it has struggled to move for- ward. The current plan being developed by New Fortress involves an integrated gas-to-power operation. The terminal would have four stor- age tanks, each with storage capacity of 200,000 cubic metres, and would have overall gas send- out capacity of up to 28.3mn cubic metres per day.
New Fortress also have planning permission to build a 500-MW combined heat and power (CHP) plant, which is expected to power new data centres that are being planned to be built in the region.
The project is well-positioned to receive LNG from the US – leading to the outcry from oppo- nents of shale gas and the use of fracking. How- ever, a map on the project’s website also shows routes to the plant from the Middle East and the Arctic – both regions where LNG exports are booming.
Once the Irish government reviews Shan- non LNG and allows New Fortress to proceed, inclusion on the PCI list should pave the way to fast-track planning approval and access to a pool of more than €5bn ($5.6bn) in EU financial sup- port. But, given the reaction to the project this month, further progress will be closely scruti- nised, and likely slow.™
Shannon LNG has been through several ownership changes as it has struggled to move forward.
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