Liz McManus (Wicklow, Labour)
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Question 80: To ask the Minister for Communications, Marine and Natural Resources if he has reviewed the submission from Engineers Ireland on the National Development Plan 2007-2013; his views on increasing on-shore oil reserves from 45 to 90 days and above 15 days for natural gas as the submission recommends; and if he will make a statement on the matter. [13620/06]

John Browne (Wexford, Fianna Fail)
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The Minister is aware of the recommendations in regard to security of oil and gas supply expressed by Engineers Ireland in its recent submission to the Department of Finance on the National Development Plan 2007-2013. As a member of the International Energy Agency, 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 obligation based on consumption. On 1 February 2006 Ireland's oil stock reserves were estimated at 101 days net imports. This comprised 32 days stocks held in Ireland by the National Oil Reserves Agency, NORA, some 33 days also held in Ireland by oil companies and oil consumers, with the balance of 36 days being held abroad either directly by NORA or on its behalf. On 1 February 2006, therefore, 65 of the 101 days stocks were held in Ireland. While the Minister is satisfied that the level of stocks held by Ireland is fully in line with international obligations he is mindful of the desirability of incrementally increasing the volume of NORA stocks held in Ireland having regard to storage availability and value for money.

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. In the context of the all-island energy market development framework, a common approach on storage and liquefied natural gas within a timeframe of 2005 to 2007, is being progressed. Work is progressing on a bilateral basis involving the Departments and regulatory authorities, North and South, and a feasibility study is being commissioned in the first instance. This work is all the more timely, given EU and international developments that underline the need for enhanced strategic approaches to security of gas supply. In addition, Marathon Oil Ireland Limited is developing natural gas storage facilities at south west Kinsale. The CER is finalising the licensing regime and it is planned that the storage facility will be operational in summer 2006.