Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I thank Senator O'Sullivan. He is correct that the UK is going to look at this issue from its own perspective. We cannot blame it for that. We would do the same thing. However, the United Kingdom is the United Kingdom of Great Britain and Northern Ireland. We have a single electricity market on the island of Ireland, North and South. Some 40% of all power generated on that grid comes from gas. That interconnection is vitally important for Northern Ireland as well. We have always had a strong relationship with Whitehall in the energy area because of that interconnectivity.

Every European country must have 90 days oil storage within its own jurisdiction or within another member state of the European Union. Some 90% of our 90-day oil storage is on the island of Ireland and we are the only sovereign holder of oil storage on this island. There is a huge interdependence there and from a strategic point of view, what happens in the Republic of Ireland is as important from an energy perspective to the British Government as it is to the Irish Government because of the interconnected relationship with Northern Ireland.

I agree with the Senator that our natural gas supply is critical for energy security. While overall policy is a low carbon energy future, natural gas is a key part of the transition and potentially an important part of the low carbon economy.In this regard, all options, including LNG, would be given full consideration to ensure the best options at least cost for the consumer are identified. In regard to the proposed LNG terminal at Ballylongford in north Kerry, the Programme for a Partnership Government expressed support for the proposal to construct an LNG terminal as it would bring connectivity for the first time to the global LNG market. It is also important to point out from discussions with my European colleagues that we are looking at trying to connect up LNG facilities right across Europe. Many of my colleagues in Europe, particularly in central Europe, are quite critical of the lack of connectivity between LNG terminals on the coast of Europe connecting with the main grid networks throughout Europe. We need to be conscious of that as well.

My Department has supported this project in becoming an EU project of common interest and, although not successful, it also supported the application for funding from the Connecting Europe Facility for the gas pipeline from the proposed terminal into the gas network itself. In terms of engaging with the promoters of the Ballylongford project, as the Senator is aware, I met the principal parties and my parliamentary colleagues to discuss the project. Officials in my Department have also engaged with the relevant parties to assist, as appropriate. However, while I will provide any support I can in regard to assistance sought from the EU, this is a commercial project and, therefore, the question of Exchequer or other public funding for this project does not arise.

I acknowledge that the development of an LNG terminal is one possible option to secure our natural gas supply in the context of Brexit. However, the continued trade in energy between the UK and EU member states is a priority. As I pointed out at the civic dialogue on Brexit, which I hosted in Boyne in County Roscommon earlier this week, we must be careful not to over-commit on particular technologies. I will consider the outcome of the study by my Department on the resilience of the long-term gas or electricity disruption and the recommendation it presents before making any decision on our long-term energy security.

As someone who in a previous life was a spokesperson on transport, shadowing the late Seamus Brennan, I took a huge interest in Foynes Port and the huge potential of the Shannon estuary. I have spoken to the outgoing US ambassador to see if we could get pre-clearance for goods and have a facility developed in Foynes that would allow direct access into the United States. It is something that I intend to explore again with the new ambassador. What the levels of trade will be in the future I do not know, and I will leave that to Senator Lawless to decipher-----