Irish gas customers could pay €85m for LNG terminal preparations, even if abandoned
Confidential government documents indicate that Gas Networks Ireland can recover up to €85 million in preparatory costs for a proposed liquefied natural gas terminal through customer tariffs, even if it is never built. The revelation has intensified criticism of the project, which the Government describes as an emergency gas reserve, as households and businesses face pressure from rising energy costs.
The authorised spending comprises up to €61.1 million in capital commitments and €23.9 million in operating costs for work including engineering, site investigations and land acquisition. The project at Cahiracon, County Clare, is estimated to cost about €420 million overall, subject to further development; separate proposals to speed it up could require another €45 million to €59 million, whose recovery is uncertain. Gas Networks Ireland serves more than 720,000 customers, while critics object to the prospect of importing US fracked gas and its climate impact.
- Customers could pay up to €85 million even if the terminal is not built.
- The authorised sum covers preparatory work on a proposed LNG project.
- Further acceleration costs may fall outside the existing recovery assurance.
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A liquefied natural gas terminal receives natural gas shipped in liquid form from overseas, converts it back to gas for use in homes and businesses, and stores emergency supplies. Ireland's government has proposed building one at Cahiracon in County Clare as a strategic reserve, particularly to reduce reliance on Russian gas following supply disruptions. The proposal comes as households and businesses already face pressure from elevated energy costs.
Gas Networks Ireland, which supplies gas to over 720,000 customers, can recover preparatory costs through customer tariffs even if the terminal is never built. These costs total up to €85 million, comprising €61.1 million in capital spending and €23.9 million in operating expenses for work such as site investigations and engineering studies. The full terminal project is estimated to cost around €420 million.
This arrangement has drawn criticism on two fronts. Customers could effectively subsidise preparatory work even if the terminal is ultimately not constructed, and critics object to importing liquefied American gas produced through fracking on environmental and climate grounds. The issue reflects broader tensions between efforts to ensure energy security and concerns about climate commitments.
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Originally published by Daily Mail as “‘Letter of comfort’: Confidential documents reveal why controversial new gas plant – which may never even be built – is STILL going to cost Irish taxpayers up to 85 MILLION euro”.