Press release
Government approves development of State-led strategic gas emergency reserve
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
Minister Darragh O'Brien has today received government approval to proceed with the development of a State-led strategic gas emergency reserve. The delivery of a temporary gas reserve is critical to Ireland’s energy security as we continue to transition to indigenous, clean renewable energy. Crucially, the strategic gas emergency reserve will also ensure compliance with EU standards and regulation.
The emergency reserve will be in the form of a Floating Storage and Regassification Unit (FSRU), to be owned on behalf of the State by the system operator, Gas Networks Ireland (GNI). This is a similar approach to that used for oil security by the National Oil Reserves Agency.
In identifying this as the optimal approach, the department has built upon the extensive review of security of Ireland’s gas and electricity systems which was approved by government in the 'Energy Security in Ireland to 2030' plan in November 2023. The plan sets out Ireland's ambition to transform our energy system and support our climate objectives. The plan includes 28 actions, under the pillars of sustainability, affordability and security. Under Action 17 of that plan, GNI was tasked with reviewing and recommending the optimal approach to deliver the strategic gas emergency reserve.
The development of a State-led reserve in the form of an FSRU is consistent with Ireland's climate law. It is a transitional measure – reducing the risk of stranded fossil fuel assets, for emergency use only, and does not support increased gas demand.
Minister Darragh O'Brien said:
"The approval of this approach represents the culmination of extensive research, analysis and engagement in relation to Ireland's energy security needs. As a small island nation reliant on interconnection, our exposure to potential disruption to gas supplies presents a significant risk to our energy security, and the continuity of supply to businesses and households across Ireland. This emergency reserve will provide an alternative source of gas at an appropriate scale if Ireland was to experience such an interruption.
"Our view remains that long-term energy security is best achieved through substantial growth in indigenous clean, renewable energy; improvements in energy efficiency; electrification of heat and transport; and increased electrical interconnection with our European neighbours. This will minimise the imports of fossil energy in the long-term. In the meantime, the development of a state-led, strategic reserve will ensure the continuity of gas supply as an essential transitional energy security measure."
ENDS
Ireland is one of 5 EU member states without domestic gas storage, something which has been identified as a considerable risk in the event of damage to one or both of our subsea gas interconnectors.
The 'Energy Security in Ireland to 2030' report was approved by government in November 2023. The plan includes 28 actions and is defined by three policy objectives: sustainability, affordability, and security.
For example, the plan commits to delivering a fit for purpose electricity grid that supports Ireland’s energy ambition and to successfully deliver electricity interconnectors.
Action 17 of the Plan was the development of a state-led strategic gas reserve.
The delivery of a strategic gas reserve is essential to Ireland's energy security, and to ensure compliance with the EU N-1 Infrastructure Standard regulation. This requirement is that a member state must have, in the event of a disruption of the single largest gas infrastructure in the state, the capacity in its remaining infrastructure to satisfy total gas demand during a day of exceptional gas demand.
Ireland’s future energy will be secure by moving from an oil, peat, coal and gas-based energy system to an electricity-led system maximising our own renewable energy potential, flexibility and being integrated into Europe’s energy systems.
Ireland's energy system transformation is underway. Renewables and interconnection are at record levels and emissions fell for a second year in a row. However, as we have seen on very cold and calm days, the electricity system remains reliant on natural gas for electricity.
A FSRU is a large vessel with the ability to store, transport, and regasify Liquified Natural Gas (LNG) and distribute this natural gas to the national gas network. It would be moored on a purpose built jetty.
The appropriate location will need to be a coastal site suitable for development with access to the gas network and sheltered deep-sea access. There is a limited number of locations in Ireland that are likely to meet the required site conditions for berthing a transitional FSRU.
The FSRU will have capacity of 170,000 cubic meters of LNG when full, which would be sufficient to supply 200,000 average domestic gas customer demand for 6 months. Alternatively, the FSRU would have the ability to supply the entire gas demand for Ireland for seven days and would be refilled to continue to supply the national gas network.
GNI will ensure appropriate contractual arrangements are in place to refill the FSRU throughout an emergency situation to provide consistent gas supplies via the FSRU for the duration required.
GNI have advised that the FSRU may be procured on a long-term leasing arrangement or an outright purchase.
While not an entry point into the market, natural evaporation, known as boil-off, is unavoidable when natural gas is liquefied, and the generated boil-off gas (BOG) must be removed to preserve the tanks' pressure.
A minimum send out of gas from the FSRU to the national gas network will ensure gas is not lost in this manner.
Arrangements will be put in place to permit this minimum send out of gas into the national network, however this arrangement should not impact on the operation of the market.
This is likely to result in the strategic gas emergency reserve being refilled up to 6 times per year.
The 2021 'Policy Statement on the Importation of Fracked Gas' notes that the statement will remain in place pending the completion of the review of Ireland’s energy security. The approval of this Strategic Gas Emergency Reserve marks that completion. The Policy Statement on the Importation of Fracked Gas will no longer remain in place.
Any application for fossil fuel infrastructure in Ireland will be subject to the planning, consenting and regulatory approvals by relevant bodies and the provision of the Climate Action and Low Carbon Development Act 2021 will apply.