Seanad debates

Wednesday, 29 November 2023

Nithe i dtosach suíonna - Commencement Matters

EU Agreements

10:30 am

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

The memorandum of understanding, MOU, the Senator refers to covers co-operation on trade, transport and the export of gas to the European Union. The MOU is not an Irish MOU but rather it is between the EU, the State of Israel and the Arab Republic of Egypt. The MOU was signed at the East Mediterranean Gas Forum, of which Ireland is not a member and at which the EU is an observer.

High Representative and Vice-President Borrell Fontelles, on behalf of the European Commission, advised, in response to a parliamentary question, that the memorandum of understanding signed on 15 June 2022 is of a non-binding nature. Although the MOU is non-binding, according to Vice-President Borrell, the EU is strictly prohibited in the implementation of a non-binding instrument from acting in a way that would amount to recognising the illegal Israeli occupation.

As in all European Commission negotiations, consultation with member states is done via the normal EU institutional communication channels.My Department has policy responsibility for Ireland's energy security, and communicates views in this policy area. Wider foreign policy considerations are led by the Tánaiste and Minister for Foreign Affairs, including communicating such with the European Commission.

The memorandum of understanding was signed a few months after Russia's illegal invasion of Ukraine, and it aligns with the EU's objective of identifying alternative sources to Russian gas. Russian gas now represents less than 10% of EU gas, compared with over 40% before the Russian invasion. Identifying alternatives to Russian gas was one element of a wider package of measures in the EU, for example, measures to demand reduction and increase the EU storage levels of natural gas.

Ireland imports four fifths of the natural gas that is uses from the UK, with the remaining fifth being supplied by the Corrib gas field. The EU has a diverse supply of natural gas, including UK indigenous pipeline gas, Norway indigenous pipeline gas, LNG, UK gas storage and gas interconnectors that the UK has with Belgium and the Netherlands. Gas supplies are expected to flow normally this winter. The UK and Ireland are not reliant on Russian gas.

A memorandum of understanding was also signed on 11 September 2023 by the Minister, Deputy Eamon Ryan, with his counterpart, Claire Couthinho, the UK Secretary of State for Energy Security and Net Zero. This memorandum of understanding, on co-operation for natural gas security of supply, strengthens established practices and co-operation between the two States and relevant Departments on the security of natural gas supply. It outlines how the two States will work together in the event of a reduction or a disruption of supply.

The Energy Security in Ireland to 2030 report, its supporting annexes and work programme of 28 actions was agreed by Government and published on 14 November. It outlines a new strategy to ensure energy security in Ireland for this decade, while ensuring a sustainable transition to a carbon-neutral energy system by 2050. This landmark report, which is informed by comprehensive review and analysis, concludes that Ireland's future energy will be secure by moving from a fossil fuel-based energy system to an electricity-led system, maximising our renewal electricity potential, flexibility and being integrated into Europe's energy systems.

With regard to natural gas, the report concludes that while gas supplies and infrastructure are adequate to meet our demand projections, there are risks in the event of disruption to infrastructure. To reduce reliance on gas imports, we need to reduce natural gas demand and to develop renewable indigenous gas supply and renewable gas-compatible storage. As a transitional measure, we will introduce a strategic gas emergency reserve to address security needs in the medium term, to used only if disruption to gas supplies occurs. This will be examined by Gas Networks Ireland and the Minister, Deputy Ryan, will return to Government with a detailed proposal in 2024.

I thank Senator Boylan for raising this important matter and look forward to hearing the views of the Seanad.

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