Brendan Griffin (Kerry, Fine Gael)
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298. To ask the Minister for Communications, Energy and Natural Resources his views on a matter (details supplied); and if he will make a statement on the matter. [10665/17]

Denis Naughten (Roscommon-Galway, Independent)
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The paper of the Oxford Institute for Energy Studies, entitled "Brexit's impact on gas markets", to which the Irish Times article refers, sets out a number of potential scenarios in relation to the gas market operation and security of supply, depending on what type of Brexit is negotiated between the EU and the UK. As the report suggests, the issue of security of supply is extremely important, and preserving the existing structures with the UK is the best way to ensure this security. In this regard, the continued secure trade in energy between the UK, and Ireland as part of the 27 Member States of the EU, is a priority for me.

To underpin the security of supply, Ireland has existing intergovernmental agreements with the UK in relation to trade in natural gas across the two interconnectors connecting Ireland with Scotland. In addition to these bilateral agreements, there are agreements and protocols in place between the transmission system operators in Ireland and Great Britain.

In addition, natural gas is now being provided to the Irish market from the Corrib gas field off the coast of Mayo. Prior to the advent of Corrib, over 95% of our gas was imported, via the two gas interconnectors, from Great Britain.  In the short term, Corrib can meet over half of Ireland's gas demand.  However, our gas import dependency is likely to increase again when Corrib depletes. It is important to emphasise that, after Brexit, Ireland will still be connected by the same gas interconnectors with the UK, and will still be importing gas from the UK.

The Oxford Institute report goes on to say that, if the existing arrangements with the UK, which is the cheapest way to provide security of supply to Irish consumers, are not preserved, an LNG regasification terminal might be needed. I agree that the potential benefits of importing LNG directly onto the island of Ireland, and also the role of natural gas storage, should be examined in the context of Brexit. However, LNG is just one of the options that will be considered to ensure our security of supply.

My Department has recently commenced the process of developing a report to identify options in order to ensure Ireland's resilience to a long-term gas and electricity disruption. This was partly prompted by the fact that, prior to Corrib, over 95% of our gas was coming from a single source - the UK. Although not impacting on the physical structures in place for the supply of gas, the emergence of Brexit is an additional factor that needs to be considered. Part of this report will identify potential options to improve resilience, including the potential for LNG, storage, interconnection and fuel diversification. All options, including LNG, will be given full consideration to ensure the best options, at least cost to the consumer, are identified.