An Bord Pleanála has rejected permission for the proposed €650 million liquefied natural gas (LNG) terminal and power station development on the Shannon estuary in County Kerry.

Shannon LNG had applied for permission to construct a 600MW power plant and an LNG terminal near Tarbert. The decision was based on government policy regarding the importation of fracked gas, with An Bord Pleanála deeming it inappropriate to allow or proceed with any LNG terminal developments in Ireland until an energy supply review has been completed.

The decision cited various government policy statements and referenced an ongoing review of the security of energy supply for Ireland's electricity and natural gas systems by the Department of the Environment, Climate, and Communications. An initial technical analysis from this review did not support the development of a commercially operated floating LNG terminal. Without policy support, the proposed development was considered contrary to the proper planning and sustainable development of the area.

Furthermore, the use of LNG as a primary fuel source for a power station was deemed inconsistent with current government policy. Taoiseach Leo Varadkar noted the need for the government to examine the decision and acknowledged the disappointment in the area. He also suggested the case for having a gas storage facility in the country.

Efforts to construct an LNG terminal at this site date back almost two decades. Permission was initially granted in 2007 for an LNG regasification terminal, but legal challenges and the quashing of an extension of permission by the High Court in 2020 complicated the project's development. In 2009, permission was also granted for a 26km gas pipeline to connect the terminal to the existing natural gas network west of Foynes, County Limerick, to link up with the national gas networks.