Porcupine Basin may hold solution to thorny issue of reliance on gas imports

A NEW exploration drive in the Atlantic to address the nation’s near-total reliance on imported gas was launched by the government yesterday.

Noel Dempsey, the Minister for Communications, Marine & Natural Resources, has confirmed he will initiate a new licensing round for the Porcupine Basin in the current year.

This is a high risk area in the Atlantic Margin, which has been made more attractive to exploration groups by the huge rise in the cost of gas in the past few years.

The minister originally flagged this latest round of exploration activity at the conclusion of the Slyne/Erris/Donegal licensing round, in 2006.

The acreage on offer in the Porcupine Basin covers unlicensed blocks totalling approximately 63,500 square kilometres. It has been classified as “Frontier acreage” due to the challenging exploration environment.

Commenting on this latest move, Mr Dempsey stressed the need for Ireland to improve its own natural gas reserves.

“Irelands need an indigenous gas supply. At present we import more than 85% of our gas requirements.”

That contrasts sharply with 10 years ago, when 95% of our gas requirement were delivered supplies from the Kinsale Field.

In the past 20 years, just five exploration wells were drilled in the Porcupine area despite the considerable potential it may offer.

“To this day it remains under-explored,” said the minister.

Mr Dempsey’s department will carry out a Strategic Environmental Assessment (SEA) of the region before exploration licenses are awarded in the Porcupine.

This process will be conducted by outside environmental experts, and the minister said “public consultation will form an integral part of the assessment”.

“During 2006, I commissioned a review of the existing licensing terms. This review is now nearing completion, and I expect to receive a final report from the consultants shortly.

“Any adjustment of terms will apply to the Porcupine round, and applications will only be formally invited for the round after decisions have been taken on the future of the current licensing regime,” said Mr Dempsey.

It is expected that applications for Frontier Exploration Licenses, covering blocks in the round, will be invited in May 2007 with the closing date at the end October.

Applications may be made for a maximum of three blocks in the north of the Porcupine Basin and for a six blocks in the south of the basin, the minister said.