New Government Must Not Leave Energy Security in hands of Failing Fracked Gas Company

Responding to reports Shannon LNG owners on verge of bankruptcy, Friends of the Earth Demand New Government Rejects LNG in Ireland.

On Sunday 15 December, the Sunday Business Post reported that the owners of the proposed Shannon LNG project, New Fortress Energy “has been battling major financial difficulties, restructuring massive debts to avoid bankruptcy, while seeing its share price fall and credits ratings downgraded.” It highlighted that “long term debt at the company has ballooned to over $8 billion, more than triple its market cap…Rating agencies Moody’s, S&P, and Fitch have all downgraded its credit rating over recent months, while the company’s share price has also collapsed by 66 per cent since the beginning of the year. Shareholders have also been filing a growing list of class action suits due to project delays.”

Responding to the news, Jerry Mac Evilly Head of Policy in Friends of the Earth noted:

“The financial failings of New Fortress Energy are another red flag and provide further grounds for the new Government to reject Shannon LNG, and LNG more widely. It would be highly reckless on both climate and economic grounds for the project to be approved in light of the latest information.

"We are also calling on relevant public authorities responsible for considering Shannon LNG’s development plans and permits, to undertake a review of their financial dealings. The company’s financial failures only further heighten the risk of stranded assets and increased costs for Irish consumers.”

The Sunday Business Post article follows a series of reports regarding the failing company New Fortress Energy which owns Shannon LNG:

-        In November 2024 the Institute for Energy Economics and Financial Analysis noted 'The implications of this potential bankruptcy for the oversupply in global natural gas may be the tip of the iceberg.'

-        In December 2024 the Institute highlighted that 'Shareholders of New Fortress Energy have filed notice of at least nine class action lawsuits against the company, alleging that it misled investors with respect to its “Fast LNG” project in Altamira, Mexico. ...New Fortress’s recent statements regarding Puerto Rico are part of the same pattern of exaggeration and overblown claims that are driving shareholders’ class action lawsuits.

-        It further noted 'the news of NFE’s financial fragility came as little surprise, given that the company has racked up a dismal track record of financial losses and canceled and delayed projects....The company's financial history is littered with massive red flags. Any prospective lender or government partner looking at the company’s financials would find ample reason to avoid relying on New Fortress Energy as a stable, reliable business partner. '

Note: New Fortress Energy’s most recent filings to the to US Securities and Exchange Commission are available here

 

ENDS