FG calls on Government to increase gas storage

IRELAND’S electricity supply would be endangered if there was any kind of energy shock as we can only store 11 days of gas in this country compared with an EU average of 52 days.

Natural gas is used to generate 55% of the country’s electricity, but more than 90% of gas used in Ireland comes from Britain. Fine Gael has called upon the Government to urgently address the problem.

“The key issue right now is the requirement for the minister and the Government to take action to require increased gas storage. The remit of the National Oil Reserves Agency should be expanded to include gas storage and storage capacity must be brought in line with EU norms. We need a Government decision immediately. Prevarication and delay, the watchwords of this Government when it comes to decisions relating to Ireland’s energy security, are not good enough,” said energy spokesman Simon Coveney.

Earlier this month, oil and gas exploration firm Providence Resources announced it had identified a potential location for gas storage off the east coast at Kish Bank Basin.

A spokesman for the Department of Energy last night pointed out that the short to medium term prognosis for the security of Ireland’s gas supplies was relatively secure in light of the projected relative stability of the British gas market. Increased global gas supplies combined with reduced global demand has also led to the International Energy Agency (IEA) projecting a more benign world outlook for the next few years.

“The department is working with the Department of Enterprise, Trade and Investment in Northern Ireland, and the energy regulators north and south on actions to enhance security of gas supply on the island including the scope for commercial gas storage,” he said.

“The development of the Corrib Gas field would also provide a new source of gas supply which could meet up to 60% of our annual demand in its early years of operation.

“In addition, the interest in providing liquefied natural gas storage on a commercial basis is also an important development. Shannon LNG has received planning permission to construct an LNG re-gasification terminal at a site located on the Shannon Estuary. This facility could potentially provide up to 40% of Ireland’s gas”.

Nonetheless, the department conceded that “the risk of supply disruption should never be discounted and the continuing depletion of North Sea gas supplies means we will become reliant on gas supplies from more distant markets. The impact of the Russia-Ukraine dispute on a number of member states in early 2009 was a wake-up call for the EU on gas security of supply”.