Engineers Ireland

Permitting of Energy Projects

0

October 2014

Martin Ahern

Shannon LNG

Production Liquefaction Shipping Regasification Marketing

What is LNG

• LNG is natural gas that has been cooled to -160 oC at which point it condenses to a liquid

• LNG’s volume is 1/600th of the volume of gas, for the

equivalent amount of energy • transported worldwide using ships

Typical LNG Import Terminal – Lake Charles, USA

3

The Natural Gas Transmission System

Interconnectors

Onshore transmission

system

4

0

20000

40000

60000

80000

100000

120000

140000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

mil

lio

n c

ub

ic m

etr

es

Declining UK Gas Production

* Source: UK Department of Energy and Climate Change (Oct 2014)

5

Kinsale

* Source: Gaslink Draft 2014 Network Development Plan and Shannon LNG

Shannon LNG was Established to Address Security of Supply

0

100

200

300

400

500

600

700

800

900

1000 1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

MM

scf/

day

Indigenous production UK Imports

UK Imports

Kinsale Corrib

6

0

100

200

300

400

500

600

700

800

900

1000

MM

sc

f/d

ay

Indigenous (Kinsale and Corrib) Shannon LNG UK Imports

Corrib

Shannon LNG

UK Imports

Kinsale

* Source: Gaslink 2014 Network Development Plan and Shannon LNG

Shannon LNG Creates Diversity and Provides

Access to World Markets

Global Location

7

8

Shannon LNG

Permitting and Consenting Process

9

Aerial View of Site – Looking Westwards

10

Admiralty Chart Ideal marine location for LNG shipping,

up to 23m deep and over 1 km wide

Archaeological Test Trenching

LNG Ship Manoeuvring Simulations

12

Offshore Rotary Coring

14

Site is close to the gas transmission system

Site is also close to the electrical transmission system

Red lines = 400 kV

Green lines = 220 KV

Black lines = 110 kV

Shannon LNG

Project Organisation

16

• Shannon LNG - Client

• Arup - Planning consultants, EIS, pipeline

and civil design

• CB&I - LNG Terminal design

• Poten & Partners - LNG and marine consultants

• Mott MacDonald - CHP Plant design

• Halcrow - Marine facilities design

• Mouchel - AGI design

• ERM - Safety and risk consultants

Shannon LNG Terminal

• Strategic Infrastructure

Development

• Upper Tier Seveso site -

HSA was consulted

• Approval received from

ABP six months after

the application was

submitted

• A subsequent alteration

application was

approved by ABP

18

Shannon Pipeline

• 26 km 30” gas

transmission pipeline

• Strategic Infrastructure

Development

• Approval was received

from ABP six months after

application submitted

Combined Heat and Power plant

19

• Combined Heat and Power

plant

• Strategic Infrastructure

Development

• Upper Tier Seveso site -

HSA was consulted

• Approval was received

from ABP six months after

the application was

submitted.

Regulatory Approvals

Terminal planning permission – ABP (Strategic

Infrastructure Development)

Pipeline planning permission – ABP

(Strategic Infrastructure Development)

Foreshore lease / licences – DoE / CSSO

Regulated third party access exemption - CER

LNG Terminal planning alteration - ABP

CHP planning permission – ABP (Strategic

Infrastructure Development)

Feb 2009

Mar 2008

Dec 2010

Nov 2010

Mar 2013

Granted

July 2013

Shannon LNG’s Planning Process

21

Demonstrated project need and benefits (national and local)

• Basic fundamentals of the proposal were clearly demonstrated - Irish

offshore gas production unlikely to deliver security of supply - Kinsale

depleted, Corrib relatively short life, UK North Sea declining

• Complied with national and local policies (Energy White Paper, SIFP* etc.)

Alternatives' Examined

• Ideal site and best technologies selected from a critical assessment of

alternatives

Local communication

• Consulted with Tarbert, Kilcolgan and Ballylongford development

associations.

• Direct Shannon LNG participation

• Open and frank dialogue on safety and environmental issues. Confronted

difficult issues

• Listened to concerns

• As a result of local input, implemented appropriate changes to the design

before planning submission

*Strategic Integrated Framework Plan for the Shannon Estuary (SIFP)

Shannon LNG’s Planning Process

22

Best Practice Design • Designed to key safety, environmental and industry best practices and

standards, e.g. BAT (Best Available Techniques)

• Extensive safety and environmental studies completed such as engineering

designs, environmental impact statements, Quantitative Risk Assessments

(QRA), site investigation works, environmental baseline studies, marine

simulations, archaeological site investigations, economic analysis, etc.

Pre application consultations • Pre application dialogue and consultation with Local Authorities (KCC & LCC),

SFPC, An Bord Pleanála and other key regulators

Shannon LNG (client) involvement • Shannon LNG, as client, reviewed and approved all designs, communications

and submissions

• Direct relationship with the local community

• Awareness of the need for honest and direct communication

Lesson Learned / Observations

• Good local relationships essential

• Superb advice and interest from key authorities: ABP, Kerry County

Council, Limerick County Council, Shannon Foynes Port Company

and the Health and Safety Authority

• The advice and guidance received within the pre application

consultation phase is vitally important and critical to the success of

the final planning application

• Other key success factors:

• Ideal site

• Demonstration of need and examination of alternatives

• Alignment with Government policy

• Ensure design complies with best practice e.g. Best Available

Techniques (BAT)

• Statements backed by data and capable of withstanding

challenge

• Experienced and knowledgeable consultants

23

Shannon LNG’s view of the SID planning process

• Effective - Highly effective and transparent planning

process

• Timely - Approval was received within 6 months of

application for all 3 projects

• Efficient - One overall approval which incorporates the

input of various statutory consultees

• Helpful - Route mapped at pre-application consultation

stage

24

Summary of Shannon LNG’s experience of the

SID Process

• A world class, fair and transparent process

• Decisions based upon critical analysis of submissions

• Professional, prompt and through consultations and

analysis by An Bord Pleanála

• A similar approach taken from other key regulators such

as Kerry County Council, Limerick County Council,

Shannon Foynes Port Company and the Health and

Safety Authority.

25

Thank you

26