Shell has lost its licence to operate the controversial Bellinaboy gas terminal in Co Mayo.

The Environmental Protection Agency issued a licence to Shell in June, which included amendements to the original 2007 agreement.

However, the Commercial Court has rescinded the licence because of defects in carrying out an Environmental Impact Assessment.

Martin Harrington of Doohama, Ballina in Co Mayo had sought to have the licence quashed through a judicial review.

He argued that the EPA had failed to carry out a proper environmental impact assessment before it granted Shell a licence to operate the gas refinery.

The EPA did not oppose Mr Harrington's challenge and will now pay his legal costs.

Shell says it will consider today's court development, and that it fully anticipates the required licence will be in place when the pipeline goes into production, a stage known as 'First Gas'. The company says it expects to reach First Gas by the end of 2014 or early 2015.

Shell to Sea spokesperson Maura Harrington has been reacting to the news: