Bríd Smith challenges private financing and asks about Shannon LNG
Bríd Smith questioned reliance on private investment for large-scale Shannon Estuary energy projects and asked whether the state should step in if private finance fails. She also raised the Shannon LNG proposal and asked how an LNG terminal would fit with the plan and energy security.
Main points from the speech
She argued the state has largely moved toward privatisation of energy generation and that the private sector has been willing to step up with large investments. She said the state still has an essential regulatory role and can also secure new revenue streams and be creative in commercial arrangements.
State investment versus private finance
Smith asked what would happen if the envisaged private investment failed to deliver the projected scale of investment and whether the state would then have a role in delivering what is needed. She emphasised that, while much of the big-money investment is likely to come from the private sector, the state can and should consider commercial as well as regulatory mandates.
Shannon LNG and the transition
She noted the Shannon LNG application is pending an adjudication later this year and placed the project in the context of wider debate on gas and energy security. She referenced the European taxonomy including gas and nuclear as part of the transition and said gas is broadly seen as required for the transition, while distinguishing between LNG sources and flagging fracked gas as a principal concern.
References to administration and models
Smith suggested looking at examples such as the Crown estate for revenue models and noted that MARA is about to be set up, which could be considered for a commercial as well as regulatory mandate. She framed these points as options for how the state might both regulate and derive benefit from offshore and estuary resources.
Outstanding questions for decision-makers
She asked whether the committee and country see gas as part of the transition and whether the location and role of an LNG terminal in the Shannon Estuary are factored into the overall plan. The speech left open how shortfalls in private investment would be handled and how LNG would interact with the proposed development strategy.
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Yeah, and thank you for your presentation. I just got two quick questions. One is there was a huge emphasis here on private investment and the investment by developers and how to facilitate them in the Shannon Estuary. And I suppose my question is, what happens if that investment fails to deliver or reach the targets that is envisaged in this presentation? I mean, it's a big scale of investment, 100 billion. And if that is failed by private investment, is there any role at all for the state and state investment in delivering what's needed? And given the previous conversation around the scale of the crisis and the rapidity with which the climate catastrophe is hurtling towards us, do you see any role for the state? And my second question is your attitude to the perspective and possible development of a Shannon LNG terminal. How does that fit in with this plan? Do you see it as a help? Do you see it as a rival or do you see it as a rival or do you have any opinion on it at all in terms of our energy security? And does the location of an LNG in the Shannon Port, is that factored into your overall plan here? Thank you. So, in relation to, I suppose, the state playing a role in the investment in energy infrastructure, I think, and correct me if I'm wrong, I think the state has made the decision that it more or less wants the privatisation of energy generation. And that's probably a bigger question. You know, it's that's certainly the way I suppose the state has approached it in latter times. And if we look across Europe, the private sector, the private sector has been more than willing to step up to the plate, I think to invest in this. So, which says that this is a commercial enterprise and the state need not necessarily be involved in the investment side, but obviously it has to be involved in the regulatory side of it, absolutely. So, I think that's the approach, you know, from what we see. I think there is significant private sector interest from large global multinational companies to invest and to unlock this potential resource. Obviously, the state's role is probably more regulatory in that, but the state can certainly gain significant new revenue streams out of this resource. And I think it can be creative in how it does that, absolutely. And again, we look across to our neighbours in the UK and to see how much the Crown estate generates in revenues and pays dividends back into the UK's checker on an annual basis. I suppose MARA is about to be set up, you know, could that be looked at in the commercial as well as a regulatory mandate and follow some of the Crown estate as an example? So, I think there is a role definitely for the state in this. I think a lot of the private sector, the big money investment can be made and will be made by the private sector. In relation to Shannon LNG, it is obviously hugely topical. You know, the Europeans have certainly in their taxonomy included both gas and nuclear as part of the transition. Obviously, there is an ongoing debate on LNG in Ireland, you know, as part of the security of supply. And I think at the moment, the Shannon LNG application is before on board for an adjudication later this year. And again, I suppose it is the question of how, again, the country and the committee maybe sees the role of gas as part of the transition. But I think, broadly speaking, commentators, and it is well accepted that, you know, gas will be required as a transition. Now, whether that gas is LNG and LNG obviously can be natural gas or fracked. And I think the main issues around gas and LNG in this country are probably on the fracked piece of it. But, you know, certainly there is a project on the Shannon Estuary with a planning live with on board and all at the moment. And I think it's important. I think it's very important. I like the two types of gas that are not going on there. I think it's fine. I think the difference is a lot of heavy pressure, but it's good for you. The difference is just like 4 p.m. But, you know, there is a lot of heavy pressure that takes up. I think it's fine. So, it's fine. But, you know, there is nothing, actually. But there is nothing, I think it's fine.
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