The development of the Corrib gas field off the the Mayo coast would have increased local employment and would have removed a barrier to inward investment, the Minister for the Marine and Natural Resources has said.
Mr Dermot Ahern was speaking to business groups while on a visit to Norway today.
In a statement, he said he did not want to comment on the specifics of last month's decision by An Bord Pleanala to reject plans for an onshore gas terminal.
However, the Corrib development would have acted as a catlyst for the extension of the natural gas network to the west of Ireland.
Enterprise Energy Ireland's plan to build the terminal at Bellnaboy was rejected on the grounds of the potential danger posed by peat transferred from the site. A lengthy oral hearing had been held into the proposal.
The Shell-owned energy group criticised the decision and local councillors said it could have "disastrous consequences". EEI already employs around 100 people on the development.
Mr Ahern told business and enterprise leaders that Ireland continued to offer great prospects and potential for offshore exploration.