Court Approves Shannon LNG Terminal

The rejection of a proposal for the planned Shannon LNG gas terminal in County Kerry has been overturned by a High Court judge. Mr Justice Richard Humphreys delivered the verdict on a recent Monday, invalidating the decision made by An Bord Pleanála and advised them to reassess the planning application in light of his determination.

Shannon LNG had put forth an application for the development of a power plant, a battery energy storage system, and a gas reprocessing unit on a massive plot of 630 acres situated between Ballylongford and Tarbert. Critics pointed out that liquefied natural gas (LNG) is extracted by means of fracking, a practice that is prohibited in Ireland due to concerns over environmental protection and public health. Detractors argue that the establishment of a storage and reprocessing site would sustain reliance on fossil fuels, which goes against Ireland’s ongoing efforts to minimise the use of polluting energy sources.

The board previously denied permission in October 2023, until a review of energy provision security until 2030 was carried out. Their verdict concluded that the LNG project was not aligned with government policies, thus making it unsuitable for the area’s proper planning and development.

In response to the government’s 2020 statement that development of LNG import terminals for fracked gas isn’t a logical approach, the judge acknowledged recent advancements that included the Versailles declaration in March 2022 by EU government leaders, including the Taoiseach. This declaration emphasised the need for an extensive evaluation of energy supply security due to the impact of Russia’s invasion of Ukraine. The European Council, with Ireland’s inclusion, unanimously agreed upon joint procurement of gas, LNG and hydrogen.

The final point made by Mr Justice Humphreys was a clarification that his statements should not be construed as supporting or opposing the LNG project.

The judge stated it was a general consensus among the parties that the government policy did not establish “a moratorium”. He clarified that a policy paper only outlined the preferred policy, which was legally open to change by the board. This is because the government policy held a “consider” status rather than an enforceable “comply with” status.

The court ordered the planners of the Shannon LNG project to re-evaluate their plans. The judge found that the board neglected to take into account the national risk assessment set for 2023, which identified a lack of variation in supply sources and storage as a security risk. The adopted policy, implemented after the inspector’s report review and immediately before the board’s decision, could have provided additional recent policy support for the application.

Furthermore, the board incorrectly categorised a draft consultation document as a national policy, favouring it in their decision to refuse the permission. The judge also highlighted additional problems, deciding to overrule the permission and suggested a reevaluation and decided in accordance with the law. The parties have a fortnight to respond to the proposed resubmission.

The judge also noted the importance of a definitive conclusion to the ongoing review of energy security and gas supply policy, which has been ongoing for roughly 2.5 years. The State justified the delay by citing Russia’s invasion of Ukraine. However, the judge believes that this should expedite, not slow down, matters.

Eamon Ryan, Minister for Energy, recently suggested investing more in solar energy, interconnections, and electricity battery storage may be more sensible than investing in LNG. He promised a detailed analysis regarding this matter in the coming months.

Upon hearing the High Court’s decision, Billy Kelleher, Fianna Fáil MEP for Ireland South, expressed it as a victory for reason and energy security in Ireland. He added, “While renewables will deliver the lion’s share of energy supply in the future, we still require alternative sources when the wind fails to blow or the sun refuses to shine.”

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