Eamon Ryan (Dublin South, Green Party)

Security of gas supply is a fundamental priority for the Irish economy given its continued importance for power generation. Given our high level of import dependence over the interconnectors with the UK, gas storage has an important role to play in contributing to enhanced gas security for the island of Ireland. The report on an all-island common approach to gas storage and LNG reinforces the case for additional storage facilities.

The existing commercial gas storage facility at Kinsale has the capacity to hold 198 million cubic metres. Licensed for use by Bord Gáis Éireann, the facility can supply around 50% of residential and SME gas needs for up to 50 days in the event of a gas disruption.

The short to medium term prognosis for the security of Ireland's gas supplies is relatively secure in light of the projected relative stability of the UK gas market. Increased global gas supplies combined with reduced global demand has led to the International Energy Agency projecting a more benign world outlook for the next few years. Nonetheless 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. The key objective of the proposed EU regulation on security of gas supply is to ensure that the market meets the gas supply needs of member states including through commercial gas storage.

I welcome the current market interest in developing further commercial gas storage, both in Ireland and in Northern Ireland. My 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.

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. LNG has the potential to improve Ireland's connectivity to the global gas market, which would be a critical factor in the event of a major supply disruption.

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