The decision by An Bord Pleanála follows an eight-day hearing involving the promoters and objectors to the project.
Shannon LNG plans to build a liquefied natural gas terminal and four storage tanks on a 280-acre site.
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The facility would store millions of gallons of natural gas, before it is pumped into the national grid via a 30km-long pipeline.
The work to build the terminal is expected to take around four years, and will create 650 jobs. The move will also create a further 50 long-term jobs.
According to Shannon LNG, the terminal will offer Ireland "diversity and security of supply".
However, residents living close to the proposed terminal said they feared explosions and leaks. Residents added that they may be forced to move from their homes if an exclusion zone was created around the facility.
(NS/JM)
