Simon Coveney (Cork South Central, Fine Gael)
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Question 55: To ask the Minister for Communications, Energy and Natural Resources if he has satisfied himself with the capacity to store gas here in the context of energy security concerns and an over reliance on imported gas from the UK. [10457/10]

Eamon Ryan (Dublin South, Green Party)
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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.

Simon Coveney (Cork South Central, Fine Gael)
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I thank the Minister for his detailed reply. Regardless of a number of planned projects to which the Minister has referred, Ireland's reliance on imported fossil fuels makes us extremely vulnerable at present. More than 90% of the gas we use on this island is imported. Let us not forget that 55% of all of the power generated in Ireland is now fuelled by gas. Almost all of that comes from the UK market.

At present, we have the capacity to store 11 days' usage of gas. This compares poorly with most European countries. France can store 92 days' gas needs, in Germany the figure is 84, in Italy 80 and in Denmark 58. The average of the EU 15 member states is 52 days. These countries are not reliant on two gas interconnectors, as we are. Regardless of what is being developed by Shannon LNG and in the Corrib gas field, does the Minister intend to extend the remit of the National Oil Reserves Agency, NORA, to include gas storage and will he set a target of an increased number of days' storage of our gas reserves?

Eamon Ryan (Dublin South, Green Party)
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I share the Deputy's concerns. The statistics he highlights show that we need to increase our commercial storage. The Commission for Energy Regulation has responsibility for managing storage licence conditions and it is the commission, in conjunction with the Department, which will look at the various options. The National Oil Reserves Agency has a connection to this. I recently had a meeting with NORA when we examined the potential for increasing storage facilities at our power plants in order to cover the risk the Deputy mentioned, that is, that in the event of a gas shortage the 55% of power generation would not be possible. That fuel back-up can be done in a liquefied distillate rather than gas. The issue does not necessarily have to be one of gas storage. This is a separate issue which largely relates to the salt deposits in Larne, the Kinsale field or some other storage facility. We will have to look at that as part of our security system.

Simon Coveney (Cork South Central, Fine Gael)
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I agree with much of what the Minister said. However, will he take action to require increased storage capacity rather than talk about the opportunities which exist in empty gas fields off Kinsale or in Northern Ireland or about potential storage of liquefied natural gas in places like Foynes?

We need a Government decision. We have the capacity to store 55 days of oil. Some of this is stored outside the State, which is also a concern. With regard to gas, we are particularly vulnerable to an accident or a shutting-off of supply, for whatever reason. That is something for which we must prepare and on which the Government should take a stand in terms of Government policy. Is the Minister willing to do that?

Eamon Ryan (Dublin South, Green Party)
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Yes. It will have to be within the confines of the European Union regulations in the area where there is a proposal for the regulation and security of gas supply. As I said, it will be done largely with the Department and the CER working with the Commission to ensure we meet the European Union requirements as well as our own needs.