UK-listed Predator moves forward with plans for floating Irish LNG terminal

UK-listed Predator Oil & Gas is moving forward with plans for a floating LNG import terminal in Ireland, it said June 24, despite the Irish government having effectively placed a moratorium on LNG infrastructure developments.

In a statement, Predator said a consultancy acting on its behalf had prepared and submitted a report to the Draft Cork County Development Plan 2021 for public consultation.

Predator has named the project "Mag Mell" -- to be located some 50km off the southern coast of Ireland -- after the mythical Irish kingdom beneath the ocean.

"The Mag Mell project has been designed to meet Ireland's immediate requirement for security and market flexibility of energy supply during a period of high demand, particularly fueled by new investment in data centers," CEO Paul Griffiths said.

Predator said it was working with Norway's Hoegh LNG and Dutch contractor Jumbo Offshore to develop the project concepts.

The work comes after the Irish government in mid-May approved a policy statement that includes a moratorium on the development of all LNG import terminals pending the completion of a review of the country's supply security.

The review is expected to be completed by the end of 2021, a spokesperson for Ireland's Department of Environment, Climate and Communications told S&P Global Platts.

'Fracked' gas

The Irish coalition government formed in June last year also made it a policy pledge not to allow the import of LNG produced from shale gas, with the policy statement presented in May confirming that Dublin "does not support the importation of fracked gas."

Predator said its Mag Mell project would specifically avoid LNG produced from shale gas.

"LNG will be sourced from a transparent origin where reliance on fracked gas feedstock will not be permitted," Griffiths said.

"Mag Mell represents a unique near-term solution to contribute to Ireland's security of energy supply and can be commissioned and operational before other alternative solutions that have been put forward," he said.

The design concepts for the project have focused on minimizing the environmental footprint relative to other energy infrastructure projects and reducing CO2 emissions, the company added.

According to Ireland's Climate Action Plan, the country is aiming to double the electricity generated from renewable sources to 70% of the nation's consumption, with the majority of the remaining 30% of electricity generated from gas.

"Maintenance of energy security for Ireland within this transition period depends on the provision of a strategic gas storage facility, such as Mag Mell, to provide security of supply for the national network," Predator said.

Ireland has no LNG import infrastructure at present, but two projects are still under development -- the Predator FSRU and US company New Fortress Energy's Shannon LNG terminal.

New Fortress has also pledged to move forward with the project, including winning planning approval from the local authorities.

Ireland is reliant on its only major producing field Corrib and UK gas imports to meet its demand requirements of around 5 Bcm/year.