Joan Burton (Dublin West, Labour)
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Question 110: To ask the Minister for Communications, Energy and Natural Resources if he will report on the use of liquefied natural gas here; if he will address concerns that risks associated with liquefied natural gas include, political instability of exporting nations, price volatility, and security of transport; and if he will make a statement on the matter. [3435/10]

Eamon Ryan (Dublin South, Green Party)
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Over half of the gas consumed in the EU comes from sources outside Europe. A key security of supply imperative for Europe is to ensure diversification of supply routes and sources of gas. Liquefied Natural Gas (LNG) increasingly is a component of this strategy as Member States work to diversify supply sources and routes. LNG imports account for approximately 15% of the total EU gas market and currently represents the main supply source of gas for the Iberian Peninsula although demand has declined with the Spanish recession. LNG supplies to North West Europe have increased in line with the coming on-stream in 2009 of new LNG facilities in UK, Italy and elsewhere, the current competitive price of LNG on world markets and increased availability of supplies. The gas market generally and the LNG market in particular is much less volatile than in 2007 or 2008.

LNG supplies to Europe are currently sourced from Norway, Algeria, Libya, Egypt, Nigeria, Equatorial Guinea, Trinidad and Tobago, Qatar, Oman and Malaysia. Most of these countries are seen as largely stable political regions.

Ireland's demand for gas is met almost entirely by imports across the gas interconnectors from the UK. A declining production and storage at Kinsale, now supplying around 4%, accounts for the remainder. Irish imports account for around 5% of the UK gas market. The vast bulk of UK gas demand is currently being met by indigenous North Sea production and imports from Norway. Through the gas interconnectors Ireland has access to diverse sources of supply including UK indigenous production, Norwegian imports and physical interconnection with mainland Europe. The UK has access to worldwide LNG markets through its significant recent investment in LNG terminals and LNG plays an increasingly important part in UK's gas supplies.

It is prudent, in light of Ireland's dependence on gas imported from the UK, to work to reduce our reliance on this source. In addition to the work to bring Corrib gas production on stream, opportunities for LNG and for gas storage are being developed.

The island of Ireland currently has no LNG import capability. An LNG import terminal is being developed by Shannon LNG on the Shannon estuary. The proposed 'merchant' LNG terminal would provide additional security of supply for Ireland in that it would bring diversity to our supply sources and would bring connectivity for the first time to the global LNG market. The prospect of such a facility is therefore a potentially positive step for the island of Ireland.

Shannon LNG has been awarded planning permission for an LNG import facility and terminal under the Planning and Development (Strategic Infrastructure) Act 2006.

The safety standards applying to an LNG facility are primarily the responsibilities of the Health and Safety Authority (HSA) and the Commission for Energy Regulation both of whom have stringent regulations and standards in place under the EC Seveso Directive and other EU Regulations.