Simon Coveney (Cork South Central, Fine Gael)
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Question 549: To ask the Minister for Communications, Energy and Natural Resources if Ireland has reserve supplies of natural gas to deal with a crisis; and if there are plans to create or increase these stockpiles. [10486/08]

Eamon Ryan (Dublin South, Green Party)
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There is currently is no requirement under the EU Energy Legislative Framework on Ireland to hold reserve supplies of natural gas. While Ireland does not currently maintain a strategic gas reserve, commercial reserves of natural gas are held by licensed natural gas shippers and suppliers, including Bord Gáis Éireann (BGÉ). At current levels, BGÉ's Kinsale reserves can supply 50% of non-daily metered customer requirements, that is, small business and domestic for up to 50 days.

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 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.

The CER has granted a gas storage licence to Marathon Oil Ireland Ltd. to make the full capability of its depleted Kinsale facility, which has a capacity of 7 billion cubic feet (bcf), available to third parties. Another development is the proposal by Shannon LNG, a wholly owned Irish subsidiary of Hess LNG Ltd, to construct a liquefied natural gas (LNG) import terminal near Tarbert on the Shannon Estuary. The project is being considered from a planning perspective under the Planning and Development (Strategic Infrastructure) Act 2006. The project could potentially provide up to 40% of Ireland's gas requirements. The connection of the Corrib gas field would also reduce our dependence on imports for the period it is in operation. The strategic objectives set down in the All-Island Energy Market Development Framework identified the need for a common approach on natural gas storage and LNG.

In 2007, a study was jointly commissioned by my Department and the Department of Enterprise, Trade and Investment for Northern Ireland, to assess the medium to long-term position with regard to security of natural gas supply on an All-Island basis, to consider the scope for a common approach on natural gas storage and LNG with a view to optimising that position and to make recommendations accordingly. The results of the study, which has recently been completed, are currently being assessed by both Departments.

Work is well advanced in implementing EU Directive 2004/67 on measures to safeguard security of natural gas supply. This will serve to further define the roles and responsibilities of gas market players relative to security of supply in the context of the liberalised natural gas market.