Martin Regan of Shannon LNG - COGEN Europe

Shannon LNG
Shannon LNG
COGEN Europe - European Parliamentary dinner
Development of a 500 MW high efficiency CHP Plant in Co. Kerry, Ireland
17 December 2012

Shannon LNG Ownership
Hess Corporation
a leading global independent energy company
1

Gas Pipeline Transmission System in Ireland

LNG Terminal Summary Description
• Deep water jetty, capable of receiving double hulled LNG
tankers up to 265,000m³ cargo capacity.
• Up to four ‘full containment’ LNG storage tanks
• Represents average gas demand in Ireland for about 40 days
• Peak re-gasification capacity up to 28.3 million Sm 3 /d
(1000 MMSCFD)
• Capable of meeting Ireland’s peak day gas demand
• Feeds gas into Shannon pipeline for delivery into the
national gas transmission network
• Heat required to process LNG from liquid into vapour

LNG Terminal and Pipeline Permitting Activities
Mar 2008
Feb 2009
Dec 2009
Nov 2010
Planning permission for terminal granted
Pipeline planning permission granted
Pipeline section 39A consent granted
Regulated third party access exemption granted
Dec 2010
Dec 2010
Jan 2011
Mar 2011
Aug 2012
LNG Terminal foreshore lease / licenses granted
Market test mandated by EU Commission launched
Consultation on tariffs for UK-Ireland gas Interconnectors
Market test completed
Judicial Review initiated due to imposition of costs of
UK-Ireland gas interconnectors on LNG Terminal

CHP and the LNG Terminal – how it works
5

CHP and LNG in Northern Europe
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Overview of 500 MW CHP Plant
Electricity Generation Facility:
• Gas turbine driven combined cycle
• Seawater cooled condenser
• Switchyard connects to electric grid
• Gas pipeline from LNG Terminal
Heat Transfer Equipment:
• Directs up to 187 MW of waste heat to LNG terminal for use in
vaporizing LNG
Permitting:
• Consultations with authorities and general public are underway
Business Drivers
• Improves the competitiveness of the LNG terminal
• Increases the competitiveness of the CHP power generation plant

Irish CHP Policy and Targets
• 800 MW CHP by 2020 Government White Paper 2007
• About 300 MW of installed CHP in Ireland
• No significant increase in CHP capacity since 2006
• The Shannon LNG CHP project will reduce Irish CO 2
emissions by:
• Avoiding the need to burn gas to convert LNG to gas
• The higher efficiency of the CHP unit compared to
conventional generation in Ireland
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Shannon LNG CHP and the Energy Efficiency Directive
• The obligations contained in Article 15 of the EED are
absolutely key to the commercial success of the
Shannon LNG high efficiency CHP project:
• Guarantee the transmission of electricity from high
efficiency CHP (Article 15.5(a))
• Provide priority or guaranteed access to the grid for
electricity from high efficiency CHP (Article 15.5(b)
• Provide priority of dispatch for high efficiency CHP (Article
15.5(c)
• Connection to the grid within an overall timeframe of 24
months (Annex XII)

Implementation of the rules is critical
• Application for high efficiency CHP status submitted to energy
regulator in February 2011
• Decision due
• Application for grid connection made in December 2010
• Awaiting decision on high efficiency CHP before it can be
processed
• Grid offer due
• Possible bias in support mechanisms for wind generation even
though CHP provides clear reduction in CO 2 emissions
• Very difficult for businesses to invest when there are no obligations
on regulatory authorities to meet deadlines and introduce well
defined processes

THANK YOU