Earlier this year Government approved the development of a State-led strategic gas emergency reserve. The strategic reserve will be in the form of a Floating Storage and Regasification Unit (FSRU), to be owned on behalf of the State by the system operator Gas Networks Ireland (GNI), and will be located in Cahiracon, Co. Clare, along the Shannon estuary.
The delivery of a temporary gas reserve is critical to Ireland's energy security as we transition to indigenous, clean renewable energy. Modelling carried out as part of the 'Energy Security in Ireland to 2030' report found that Ireland does not have adequate resilience in case of a major disruption to our subsea gas import pipelines and does not meet minimum EU standards in this area. The strategic reserve will ensure that we meet this standard in the most cost-effective and achievable manner available to the State, while enhancing our energy security and resilience.
The strategic gas emergency reserve is not intended for commercial use. The liquefied natural gas (LNG) will be held in reserve for use in the event of a significant disruption to gas supplies and will be divested when no longer required to secure Ireland's energy systems. The operation of the strategic gas emergency reserve will be underpinned by both policy and legislation that my Department is currently developing and will be progressed as a matter of priority.