Dinny McGinley (Donegal South West, Fine Gael)
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Question 159: To ask the Minister for Communications, Marine and Natural Resources the storage capacity of oil, gas, coal or other fuels; his plans to improve same in line with economic development requirements; and if he will make a statement on the matter. [20708/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 346: To ask the Minister for Communications, Marine and Natural Resources the storage capacity of oil, gas, coal or other fuels; his plans to improve same in line with economic development requirements; and if he will make a statement on the matter. [20833/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 159 and 346 together.

As a member of the International Energy Agency 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. The National Oil Reserves Agency (NORA) is responsible for holding Ireland's strategic oil reserves.

Ireland meets its obligations through a combination of stocks owned by NORA both at home and abroad, stocks 'ticketed' by NORA and operational stocks held in Ireland by the oil industry and large companies. At 1 April 2006 Ireland's oil stock reserves were estimated at 108 days net imports of which NORA stocks accounted for 37 days. It is estimated that oil storage capacity held by the Irish oil industry and oil consumers amounts to 98 days. The question of increasing the capacity of oil companies and oil consumers is one for the companies themselves.

I am satisfied that Ireland's emergency oil stock levels are sufficient to ensure that we would be in a position to participate effectively in any internationally coordinated response in the event of an international oil supply disruption, or manage any short-term disruption specifically impacting on the Irish market.

The Irish gas transmission system is designed to cope with a 1-in-50 peak day, or the coldest day likely to occur once in 50 years. A new Unified Code of Operations introduced by the Commission for Energy Regulation (CER) in April 2005 sets out standards for the protection of non-daily metered customers (including households) in the event of disruption of supply or extreme climatic conditions. This is a robust standard which takes account of the scarcity of indigenous resources. Within the pipeline system itself (i.e. interconnectors and ring-main) there would be a stock level of 20-30 mscm (otherwise known as linepack).

The CER is currently in the process of issuing a licence to Marathon Oil Limited to operate a storage facility at the depleting gas fields off the Kinsale Head in Co. Cork. This facility, with a storage capacity of 7bcf, will come into operation on the 1st of June 2006. The CER has the statutory function of licensing natural gas storage facilities. In carrying out its functions, the CER must have regard to the need to secure that 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.

One of the strategic objectives of the All-island energy development framework for natural gas is a common approach on natural gas storage and LNG. An All-island study is being commissioned to assess the medium to long-term position with regard to security of natural gas supply and consider the scope for a common approach on storage and LNG. It will also have regard to industry views, any existing capacities as well as to planned or proposed developments for storage on the island.

In the case of peat, Bord na Móna holds stocks of approximately 7 million tonnes of peat. This equates to almost twice the Board's annual contracted sales of milled peat for electricity generation at three power plants and sales by two briquette factories.