Darragh O'Brien (Dublin Fingal East, Fianna Fail)

On 4 March this year, I received Government approval to proceed with the development of the State-led strategic gas emergency reserve, securing Ireland's energy system, which all would agree is essential. I will continue to take decisive action to protect Ireland's economy and citizens from the potential of a catastrophic impact on or disruption to our gas supplies.

The delivery of temporary gas reserves is critical to Ireland's energy security as we continue the transition to indigenous, clean renewable energy. Crucially, the strategic gas emergency reserve will also ensure compliance with EU standards and regulation. In identifying this as the optimal approach, the Department has built upon the extensive review of the security of Ireland's gas and electricity systems published in the energy security package in November 2023. The emergency reserve will be in the form of a floating storage and regasification unit to be owned on behalf of the State by the system operator, Gas Networks Ireland, GNI.

The standard approach for cost recovery for security of supply measures and investment to meet EU regulations is through the existing regulatory framework and is achieved over the lifetime of the asset. Identifying opportunities to minimise the impact of the cost on energy consumers is a key workstream of this project. GNI is now progressing the project through the relevant planning and regulatory structures.

Given the risk we seek to address, all options to accelerate delivery of the project are being pursued. The final cost to deliver the strategic gas emergency reserve and cost recovery model are being assessed as we progress the project through the detailed design phase, and every effort will be made to minimise the cost to consumers. The final investment decision will be subject to Government approval and will be supported by independent assessments undertaken by the financial and commercial advisory authority, NewERA, as well as the Commission for Regulation of Utilities.

See this speech in context