Jim O'Keeffe (Cork South West, Fine Gael)
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Question 31: To ask the Minister for Communications, Energy and Natural Resources if he has concerns regarding the increasing costs of natural gas and supply thereof; and the situation in relation to domestic resources and import arrangements. [20946/08]

Eamon Ryan (Dublin South, Green Party)
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The Energy Policy Framework 2007-2020 sets out a range of actions designed to ensure the security and reliability of gas supplies for Ireland while we work to deliver greater diversity in the fuel mix.

The sources of Ireland's natural gas supply are indigenous production combined with imports from the UK to Ireland via sub-sea gas interconnection to the Moffat entry point located onshore in Scotland. The source of imported supply has largely been the North Sea although this situation is changing as the UK has moved to become a net gas importer. UK gas imports come from a range of sources and by a variety of routes from Continental Europe and from Norway.

With the decline of the Kinsale gas field and, pending the full development of the Corrib field, we now import over 90% of our natural gas from the UK. The connection of the Corrib gas field, with its estimated capability to supply some 60% of our annual natural gas requirements over the first 3-4 years of production, will also significantly reduce our dependence on imports during that period.

The prospect of a liquefied natural gas (LNG) terminal at Shannon is a potentially positive step in securing diversified gas supplies for Ireland. The recently finalised study on a common approach to natural gas storage and liquefied natural gas on an all-island basis, which was commissioned by the two Departments North and South, is currently being assessed.

In the context of new record peaks this year in international gas prices, the prospect of price increases later this year has been signalled by Bord Gáis and the Commission for Energy Regulation. High gas prices underline the imperative of achieving a more diverse and sustainable fuel mix together with enhanced energy efficiency.