As many farms face record high energy and input costs, the proposed €650m liquefied natural gas (LNG) import terminal on the Shannon Estuary has come into sharp focus.

Ireland relies heavily on imported natural gas for heat and electricity production.

With traditional European supplies coming under increased pressure, many believe the proposed terminal could help alleviate the energy crisis by facilitating US LNG imports directly into Europe.

Shannon could act as a strategic gateway to the continent for US gas, utilising our relatively young, fully connected gas network.

Opposition

The project has attracted intense opposition from environmentalists and Minister for the Environment Eamon Ryan, who believe the development should not proceed as it would lead to the importation of fracked US gas.

The Shannon terminal would be the lowest cost access point for US LNG into Europe

Under EU Law, the Government cannot ban the importation of fracked gas, but under the Renewable Energy Directive II, it can mandate suppliers to provide Guarantees of Origin for all fossil fuels, similar to renewable energy.

That would give transparency to purchasers of LNG, putting the onus on them to ensure the gas isn’t from fracked sources.

The Shannon terminal would be the lowest cost access point for US LNG into Europe, which may help to explain the planned Russian naval exercises next month.

Once the move away from natural gas is completed in the coming decades, the terminal could be repurposed to store bio-LNG, produced from renewable sources.