Shannon LNG Delays Construction Date, Remains Committed to Constructing Irish LNG-Receiving Terminal

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Researched by Industrial Info Resources (Sugar Land, Texas)--Shannon LNG Limited (Dublin, Ireland) is planning to construct a new liquefied natural gas (LNG) receiving and re-gasification terminal in Ireland. Shannon LNG is a wholly owned subsidiary of Hess LNG Limited (New York, New York), which is a joint venture of Poten & Partners Incorporated (New York, New York) and Hess Corporation (NYSE:HES) (New York, New York). The proposed LNG terminal will be located on the Shannon Estuary with its deep water channel approximately 4.5 kilometers from Tarbert and 3.5 kilometers from Ballylongford on a 280-acre site. Originally, the $800 million terminal was scheduled for construction in 2009, but the permitting process and current global economics have pushed the construction start to late 2010 or early 2011.

Shannon LNG has received permits for the LNG terminal and is studying the permits required to construct the 30-kilometer, 30-inch-diameter natural gas pipeline to tie the LNG terminal into the grid. The permitted Shannon LNG terminal will have an initial send-out capacity of 400 million cubic feet per day of natural gas, with a peak gas send-out level of 600 million cubic feet per day. To support this send out capacity, Shannon LNG will construct two of the permitted 200,000-cubic-meter LNG storage tanks. Because of the channel's deep water and the design of the Shannon LNG terminal, LNG Carriers designed with a cargo capacity of up to 265,000 cubic meters of LNG will be able to discharge their cargos at the terminal. Up to 125 of these large LNG carriers could discharge cargos each year at the site.

Shannon LNG Limited expects to receive permitting for the natural gas pipeline portion of the project and begin the front-end engineering and design (FEED) phase of the LNG terminal in late 2009. Construction on the Shannon LNG Terminal is expected to begin in late 2010 or early 2011 and take up to three years to construct. Construction is expected to create up to 600 construction jobs and the Shannon LNG project is expected to create 50-60 new permanent jobs when completed and operating.

Shannon LNG's project is just one of approximately 35 new LNG terminals currently being developed in Europe, six of which are presently under construction. Europe seems to be experiencing an extensive expansion of LNG facilities similar to what happened in North America beginning in late 2004.

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