Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 221: To ask the Minister for Communications, Marine and Natural Resources his proposals to encourage or otherwise influence the provision of adequate oil or gas storage facilities in the event of the cut off of supplies for any period of time; and if he will make a statement on the matter. [2054/06]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 640: To ask the Minister for Communications, Marine and Natural Resources if he proposes to encourage or otherwise influence the provision of adequate oil or gas storage facilities in the event of the cut off of supplies for any period; and if he will make a statement on the matter. [2003/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 221 and 640 together.

Ireland is a member of the International Energy Agency — IEA — which, inter alia, monitors developments on the international oil market. The IEA keeps the oil market under constant review. As a member of the IEA, Ireland is required to maintain emergency oil stocks equivalent to at least 90 days of net imports of crude oil equivalent in the previous year. The EU imposes a similar requirement based on consumption. At 1 November 2005 Ireland's oil stock reserves were estimated at 106 days net imports. My Department has contingency arrangements in place to deal with major oil supply disruptions. In the event of a significant global oil supply crisis, Ireland's oil reserves would be extended over the period to supplement available, albeit reduced, commercial supplies. In this context reserves provide cover for periods far in excess of their expression in terms of number of days.

There would be no question of Ireland attempting to deal unilaterally with an international oil supply disruption. If such a crisis were to occur, the response, including the release of emergency stocks and the identification of alternative sources of supply, would take place within the framework of the formal emergency regime developed and maintained by the IEA. I am satisfied that Ireland's emergency stock levels are sufficient to ensure we would be in a position to participate effectively in any internationally co-ordinated response in the event of an international oil supply disruption or manage any short-term disruption specifically impacting on the Irish market.

In the context of the all-island energy market development framework the scope for a common approach on storage and liquefied natural gas is being progressed jointly in conjunction with both regulatory authorities. Under the Gas (Interim) (Regulation) Act 2002, the Commission for Energy Regulation, CER, has the function of licensing natural gas storage facilities. In carrying out its functions the Commission must have regard to the need to ensure there is sufficient capacity in the natural gas system to enable reasonable expectations of demand to be met and to secure the continuity, security and quality of supplies of natural gas.

The CER is in discussion with Marathon Oil Ireland Ltd. regarding the development of natural gas storage facilities at south west Kinsale. The CER has recently completed a public consultation on the proposed regulatory regime for the storage facility. A further consultation on a natural gas storage licence will commence shortly. It is planned that the storage facility will be operational by the middle of 2006.