Ireland has oil to last 109 days, says Dempsey

IRELAND has stocks of 2.1 million tonnes of oil - enough to match normal imports over a 109-day period.

As the price of oil soars to record new highs of more than $54 a barrel the Natural Resources Minister Noel Dempsey came under pressure in the Dáil to outline Ireland’s response to an energy crisis arising from geo-political events.

Mr Dempsey outlined that as of August 1 2004, Ireland held 2,171,000 tonnes of oil, which is equivalent to 109 days of net imports using the IEA methodology.

“There is no question of Ireland or any other oil consuming country attempting to deal on its own with a major interruption in world oil supplies. If such a crisis were to occur, the response, including the release of emergency stocks and the identification of alternative sources of supply, would take place at international level, primarily within the framework of the formal emergency regime developed and maintained by the International Energy Agency,” he told anxious TDs. Mr Dempsey said the Commission for Energy Regulation monitors the security of electricity supply.

“Demand for electricity is forecast to grow at an annual rate of between 2.9% and 4.3% over the period 2004 to 2010, necessitating additional generating capacity. The CER has initiated positive actions to redress postulated generation capacity shortfalls as forecast in the generation adequacy report by ESB National Grid.

“Short-term measures put in place for this winter include the implementation by ESB National Grid of a demand side management programme; increased imports of 167 MW of electricity from the North, contracted on a priority basis and 208 MW of additional peaking capacity,” he said.

Mr Dempsey said two new independent plants, successful in the CER Capacity 2005 competition, which will generate up to 500 MW, are due to be commissioned by December 2005 and February 2006. A further two new peat plants with a combined capacity of 250 MW are due to be commissioned by December 2004 and February 2005. The minister also revealed that CER will impose penalties on the ESB for failure to deliver.