In order for Ireland to ensure adequate resilience in case of a major disruption to our gas imports, we will introduce a Strategic Gas Emergency Reserve as a transitional measure to address security needs in the medium-term, to be used only if a disruption to gas supplies occurs.
My Department, in consultation with Gas Networks Ireland, the transmission system operator, will complete a detailed examination of the optimal approach to deliver the emergency gas reserve which will include consideration of projected costs.
The proposal will be developed in accordance with specific criteria requirements including:
• a proposal which can be implemented quickly
• a proposal which does not inadvertently increase gas demand by increasing the supply available on the market
• a cost-effective proposal at the appropriate scale which provides sufficient resilience if a disruption to gas supply occurs, and
• a proposal which is compatible with the Climate Action and Low Carbon Development Act 2015-21
All opportunities to accelerate the potential implementation of this project will be explored on the basis of its strategic importance.
With regard to geological gas storage - as part of the Department’s Review of the Security of Energy Supply of Ireland’s Electricity and Gas Systems, Cambridge Economic Policy Associates (CEPA) completed a technical analysis which included a detailed assessment of a short list of mitigation options for gas security of supply, including strategic gas storage and strategic floating storage and regasification unit (FRSU). The technical assessment of each option focused on: the impacts on physical security of supply in a shock event; the impacts on gas and electricity prices both in a shock and resulting from operation in the market in general; and the impacts on carbon emissions both in a shock event and resulting from operation in the market in general.
Their analysis determined that a strategic FSRU is the only short-listed option that can fully mitigate all security of supply impacts in the tested scenarios. The strategic gas storage option, based on the Southwest Kinsale Reservoir which operated as a seasonal gas storage facility between 2006 and 2017, can only partially mitigate unserved demand. It is also noted that the field could not be replenished in case supplies from the UK were not available over a prolonged period.
The CEPA analysis was a key input to the 'Energy Security In Ireland to 2030' report and its Annexes, which concluded the long-term approach to securing Ireland’s gas supplies will include: the development of long-term gas storage solutions which can store renewable gas, in particular hydrogen; and on a transitional basis, the creation of a strategic gas emergency reserve.
