This article is from page 3 of the 2006-05-23 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 3 JPG
HALF of Ireland’s gas needs could be met by two Clare based organisations over the next ten years if developments announced this week come to fruition.
Shannon Development has entered a potentially lucrative land development gas deal in Kerry while the proposed gas field off Spanish Point made significant progress over the last seven days.
The regional development agency has agreed an ‘option to purchase agreement’ with Shannon LNG regarding 281 acres of Shannon Development owned land bank between Tarbert and Ballylongford near the national grid gas pipeline. According to Shannon Development Chief Executive Kevin Thompstone the project could provide over 40 per cent of Ireland’s gas requirements. Under the agreement, Shannon LNG, an Irish subsidiary of Hess LNG Limited, is proposing to build a €400 million liquefied natural gas (LNG) receiving terminal on land on the Shannon Estuary.
According to Shannon Development the deal allows for full consultation with the relevant authorities and the local community.
The proposed terminal would comprise a ship unloading jetty, two or more LNG storage tanks and related buildings and facilities. In addition, a new pipeline, about 25 to 30km in length, will be built to transport the gas to the national gas pipeline system, east of the site.
Announcing the initiative yesterday, Minister for Enterprise, Trade and Employment, Micheál Martin TD said the project; “has the potential to make a real difference to long term energy costs as well as to deliver significant environmental and employment benefits.”
Meanwhile, plans to develop a major gas field off Spanish Point moved a step closer last week with the announcement by Providence Resources that they are looking for a partner to help them develop the site.
The search for a third party developer is a significant step in the Spanish Point field and a company spokesperson described the interest being shown in industry as ‘significant’.
The company farmed out an 80 per cent stake of a similar project at Dunquin off the Kerry coast to the world’s largest publicly listed energy company, ExxonMobil, in February. A similar agreement could see work commencing on the Spanish Point site in the next 12 months.
Initial survey data indicates that there could be a 30 year supply of gas in the Spanish Point field while exploratory work on it’s sister site off the north Clare coast is ongoing.
Providence also announced gross profits in excess of €1million for 2005 last week.