A €400 million gas terminal is to be built off the coast of Co Kerry.
The State agency Shannon Development has entered into an option-to-purchase agreement with Shannon LNG in relation to 281 acres of the 600-acre agency-owned land bank in north Kerry.
Under the agreement, Shannon LNG, an Irish subsidiary of Hess LNG Limited, is proposing to build a €400 million liquefied natural gas receiving terminal on the land bank on the Shannon Estuary.
The Tarbert/Ballylongford site, which has been designated by Shannon Development for deep-water projects, is about 25 kilometres from the national gas pipeline grid.
Minister for Enterprise Micheál Martin said: "I am delighted to formally announce this exciting proposed development, which has the potential to make a real difference to long term energy costs as well as to deliver significant environmental and employment benefits."
Green Party energy spokesman Eamon Ryan said the proposed facility will help reduce Ireland's reliance on gas coming on long distance pipelines running all the way from Siberia.
"However, today's announcement seems to be more of a solo run from Micheál Martin, the Minister of Enterprise, Trade and Employment, rather than a real signal of Government plans," said Mr Ryan.
"No firm analysis has been presented as to how such a facility would work in the Irish market.
"The lack of any involvement by energy minister Noel Dempsey in today's announcement shows how disjointed the Government has become when it comes to energy policy. We are now calling on Minister Dempsey to outline whether he believes such a facility should be developed and to say whether he agrees with the location and arrangements being promoted by Minister Martin".
