Michael D'Arcy (Wexford, Fine Gael)
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Question 14: To ask the Minister for Communications, Energy and Natural Resources his plans for energy security with particular regard to gas storage; and if he will make a statement on the matter. [21449/08]

Eamon Ryan (Dublin South, Green Party)
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Currently, over 90% of Ireland's energy needs are provided for by imports. In order to ensure the security and sustainability of our energy supply, we must reduce our reliance on imports and significantly enhance the diversity of our energy mix. 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.

The Commission for Energy Regulation (CER) has the statutory 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 to construct a liquefied natural gas (LNG) import terminal near Tarbert on the Shannon Estuary. 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.

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. The study also considered the scope for a common approach on natural gas storage and LNG. A summary of the study has been published on the websites of both Departments. The results of the study, which has recently been completed, are currently being assessed by both Departments.