NextDecade In Irish FSRU Talks

Texas-based LNG export projects developer NextDecade last week announced it has signed a memo of understanding with Ireland's Port of Cork.

Under the MoU, both parties have committed to exclusive collaboration on the possible installation by NextDecade of a floating import terminal (FSRU), plus associated infrastructure, capable of regasifying up to 3mn metric tons/yr into the Irish gas grid, according to the Texan firm's July 19 statement.

Under the MoU terms, the potential development at the Port of Cork would receive some of the LNG from NextDecade’s planned 27mn mt/yr Rio Grande liquefaction and export project at Brownsville in south Texas, which NextDecade says would provide "competitively priced energy solutions to Ireland and its regional partners under long-term contracts and, if constructed, ...substantially increase and diversify Ireland’s supply of natural gas."

In December 2016, NextDecade signed a Heads of Agreement with FSRU provider Flex LNG for the joint development of a full value chain infrastructure solution using FSRU and dockside regasification technology. Now NextDecade has said that Norway-based Flex LNG will support its plans at Cork. 

NextDecade added that it is in talks with European energy companies to enter into long-term purchase contracts for delivery of LNG at the Port of Cork, under which it would manage shipping arrangements from Rio Grande LNG.

The US developer said July 19 that both it and the Port of Cork are planning a joint public event at the Port of Cork on August 2 to highlight the MoU and its potential benefits for Ireland and its regional partners, to be attended by NextDecade CEO Kathleen Eisbrenner and Flex LNG CEO Jonathan Cook.

Not the first Irish LNG import project

For many years Shannon LNG, originally a joint venture of Hess Corporation and Poten, but now 100% Hess-owned, has been discussing its LNG import project for southwest Ireland with authorities there, but to date there has been no investment decision. It's understood that Hess too has since considered the merits of a FSRU, rather than the onshore facility design it had progressed to date. Hess says its proposed location on the Shannon estuary would include a deep water jetty, capable of receiving Q-Max-sized LNG tankers up to 266,000m³ capacity.

Currently, the UK and Irish gas systems are fully integrated -- with UK and Norwegian gas flowing to Ireland, and gas from Ireland's Corrib field sometimes flowing in the opposite direction. However the UK's exit from the EU, scheduled for 2019, opens up uncertainties -- including that the single EU internal market for gas, in which non-member Norway also participates, might fragment with new supply & trading relationships being required. 

Ireland currently has no LNG import facility, but does have two gas interconnectors with the UK. There is also a third subsea interconnector, called Snip, linking Scotland and Northern Ireland (both parts of the UK).

Artist's impression of NextDecade's proposed giant 27mn mt/yr Rio Grande LNG export facility in south Texas (Credit: NextDecade)

Mark Smedley