Jerry Buttimer (Fine Gael)
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I welcome the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, to the Chamber and thank him for being here. It is always good to have a Cabinet Minister here for Commencement matters. The Minister is no stranger to us and I thank him for that.

Glaoim ar an Seanadóir Lynn Boylan. A Sheanadóir, tá ceithre nóiméad agat.

Lynn Boylan (Sinn Fein)
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Gabhaim buíochas leis an gCathaoirleach.

Today I want to discuss the critical issue of strategic gas storage. If the Government is going ahead with its plan for more gas infrastructure, there is an imperative need for robust legal and regulatory measures governing its implementation. It is essential to establish a framework that ensures any strategic gas storage is temporary and does not increase gas demand and that it aligns with our climate obligations.

Why are we saying that any proposed strategic gas should meet this threshold? The reasons are multifaceted and deeply rooted. First, we must prevent long-term fossil fuel lock-in. Committing to new fossil fuel infrastructure poses a significant risk of perpetuating polluting emissions and increasing our reliance on fracked gas imports. Such infrastructure would also undermine our efforts to reduce carbon emissions and could lock us into decades of reliance on fossil fuels, counteracting our climate goals.

Moreover, there are profound implications for our climate leadership. We know that Ireland, and rightly so, took a prominent stance in the Beyond Oil and Gas Alliance, the European Union and the International Energy Agency. Introducing new fossil fuel infrastructure could erode that leadership position that we have taken and contradict our commitments to transitioning towards cleaner energy sources. An independent risk assessment is crucial in this context.

Gas Networks Ireland, while an important stakeholder, has a vested interest in increasing gas supply. To ensure unbiased and comprehensive assessments, we must involve independent bodies such as the Commission for the Regulation of Utilities, CRU, and the Climate Change Advisory Council. Any proposed infrastructure must be meticulously evaluated for its risks to public safety, national security and its potential for locking us in to further emissions. We must address the conflict of interest in having Gas Networks Ireland alone analyse the feasibility of a strategic, temporary floating storage and regasification unit. Ensuring that GNI's plans align with the State's carbon budget programme should be non-negotiable.

Looking beyond our borders, we do see that President Biden's administration has taken decisive action in halting new LNG exports and reviewing the impacts of LNG. These actions underscore the global shift towards scrutinising and curbing fossil-fuel dependancy and, similarly, concerns with voting LNG terminals delaying the transition away from gas should prompt us to question the applicability of such solutions in Ireland. The same vigilance applied to our Moffat import point must extend to any floating strategic reserve unit proposals.

There are several risks to a floating LNG terminal, in particular the concerns about a strategic State-led LNG terminal that would never be used. I am not aware of any precedence on whether it is feasible in practice. I would like to hear the Minister's view on floating LNG terminals losing 20% of their cargo every four months due to boil-off of gas. If the plan is not to use it but to have it as a back-up reserve, how does that square? We need guarantees to stop third party LNG importers from operating at the site and assurances that it will not open the floodgates to other fracked gas import terminals opening elsewhere.We also need assurances that this will not open up the market to direct LNG imports. The Government energy security review outlines essential conditions for any strategic gas storage initiative. If we are to enforce these conditions effectively, we must ensure enduring enforcement and adherence to our climate commitments that cannot be rolled back on.

As we deliberate on the future of our strategic gas storage, we need to remain steadfast in our commitment to sustainability, independence and leadership in climate action. The implementation of a robust legal and regulatory framework is not just a necessity but a responsibility.

Eamon Ryan (Dublin Bay South, Green Party)
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The Government approved and published the Energy Security in Ireland to 2030 report last November, which concludes that Ireland’s future energy will be secure by moving from a fossil-fuel based energy system to an electricity-led system that maximises our renewable energy demand flexibility and is integrated into Europe’s energy systems. Ireland needs to enhance its resilience in the event of a disruption to the country’s natural gas supplies.

The energy security review determines that a disruption to Ireland’s supplies of gas is considered to be an unlikely but high-impact event. Without implementing new additional resilience measures, a significant disruption would lead to unacceptably high economic costs with potentially catastrophic impacts for society, particularly our most vulnerable. Ireland’s energy security will be significantly improved and risks greatly reduced through the implementation of a strategic gas emergency reserve on a transitional basis for use in the event of a disruption to gas supplies.

The Government’s National Risk Assessment: Overview of Strategic Risks 2023 report states that the lack of diversity of supply sources and storage is a risk for security of supply. Risks relating to secure and sustainable energy supplies have been heightened and intensified by the war in Ukraine. Recent attacks on the Nordstream and Baltic interconnectors are examples of the heightened risks presented to critical energy infrastructure.

The Department, in consultation with Gas Networks Ireland, the transmission system operator, is completing a detailed examination of the optimal approach to deliver the emergency gas reserve, which will include consideration of a timeline for construction and climate objectives among other factors. The proposal is being developed in accordance with specific criteria requirements, including a proposal that can be implemented quickly and decommissioned as it is going to be temporary, a proposal that does not inadvertently increase gas demand by increasing the supply available on the market, a cost-effective proposal at the appropriate scale that provides sufficient resilience if a disruption to gas supply occurs and a proposal that is compatible with the Climate Action and Low Carbon Development Acts 2015 to 2021.

Gas will continue to play a key role to support the secure transition to an energy system based on electrification and greatly increased renewables penetration. Reducing gas demand and increasing renewable gas production will reduce the impact of Ireland’s risk but the risks themselves will remain for at least a decade. The impact of any significant unplanned reduction in the country’s gas supplies would have severe economic and social impacts.

The strategic gas emergency reserve will be supported by policies outlining its terms of use to ensure the reserve operates to mitigate the risk of a gas supply disruption. An end-of-life policy will also be developed to ensure that once the risk is no longer a viable concern for Ireland’s energy security, the reserve will no longer be required.

Gas demand is expected to drop significantly through the course of the decade from 2030 and production of renewable gases is set to increase along with the introduction of renewable gas-compatible storage. This would enable security of supply benefits to be delivered without committing to a long-term dependence on natural gas.

A State-led approach is consistent with the climate Act and broader Government climate and energy policy avoiding the risk of fossil fuel lock-in or stranded fossil fuel assets. The optimal approach will be determined by the Government's continued commitment to the three policy objectives of sustainability, affordability and security. All opportunities to accelerate the potential implementation of this project will be explored on the basis of its strategic importance. I expect to return to the Government for a final decision on this later this year. I thank Senator Boylan for raising this important matter and I look forward to hearing the views of the Seanad.

Lynn Boylan (Sinn Fein)
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We are concerned about the consultation with Gas Networks Ireland because not only does it have a vested interest in the continued use of gas and protecting its assets, it is also on record as having no issue with connecting data centres directly to the gas grid. It does not see any contradiction in that and its public statements contradict statements that have come out of the Department and the Minister's letter asking Gas Network Ireland not to connect those data centres to the grid. That is a key part. One is about independence so why not have the energy regulator, another independent body, be part of that energy security review? When are we going to close that loophole that allows the data centres to continue to connect to the grid? In his response, the Minister agreed that we need to reduce gas demand. That is essential. We have to reduce gas demand and we need a strategy around that but when we look at the use of gas and the rate of its growth, it is clearly connected to these data centres that are connecting to the gas grid.

Eamon Ryan (Dublin Bay South, Green Party)
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In saying that we are committing that everything must be compatible with the Climate Action and Low Carbon Development Acts, we are saying that this cannot involve expansion of the use of gas. It is the opposite. We must contract. With an organised plan to retreat, we will need some gas for the likes of back-up. We will need some gas-fired generation that will run for very few hours but will be there during periods when the wind or interconnection cannot provide us with capability.

Similarly with data centres, we cannot agree to the further expansion of data centres depending on gas expansion. It is not where that industry will go, or wants to go, because it cannot be outside its own climate limits. That is why this must be a temporary facility. This is an interim solution while we ramp up the alternative electricity supply and our development of biomethane. Yesterday, the Government launched a major initiative in scaling up our natural gas sustainable resources. That is the future - not expanding gas supply.