Russian president Vladimir Putin’s war on Ukraine and his weaponisation of gas supplies has prompted several European countries to seek temporary floating liquefied natural gas (LNG) terminals to ensure they can keep the lights on this winter.
Ireland, though less reliant on Russian gas, is reviewing its security of supply. There has been a reluctance in Government, predominantly Green Party-led, to embrace LNG due to concerns that some of the gas is extracted through the controversial and environmentally-damaging practice of fracking. A proposal by a private developer, New Fortress, to build a permanent LNG terminal on the river Shannon is backed by some in Fine Gael but opposed by the Greens.
Other proposals for floating storage and regasification units (FSRUs), similar to those being introduced in a number of EU countries, have either fallen by the wayside or been met with little encouragement from Government. FSRUs are large ships that can store LNG and convert it from liquid to gas and can link up with gas pipelines at ports.
Germany – which has been heavily dependent on Russian gas – has chartered five of the 50 or so FSRU vessels in existence, and plans to spend as much as €3 billion on the floating terminals over the next decade.
There were proposals for a FSRU at the Port of Cork put forward by a company called Next Decade, but these plans never proceeded.
The S&P Global Commodities Insights website reported in January 2021 that the company decided to suspend the development of the project, according to executive Patrick Hughes, “due to increased uncertainty in Ireland’s evolving policies regarding the importation of LNG”.
The chief executive of Mag Mell Energy, which has proposed another LNG project involving FSRUs that would use existing pipeline infrastructure at the spent Kinsale gasfield, said his company has been “stonewalled” by the Government.
Paul Griffiths said there has been “no proper engagement” from the Department of the Environment in relation to his plans. His company has said the potential decommissioning of the Kinsale pipeline should be taken off the table and wants Government buy-in for its LNG proposal.
Mr Griffiths suggested that had the project been implemented when it was first proposed in 2020 “this winter’s energy emergency and price inflation could have at least been ameliorated”.
In response to Mr Griffith’s comments, a department spokesman said there would be a public consultation period as part of the energy security review, and it would offer an opportunity for stakeholders to put forward their views. He said a May 2021 Government policy statement on fracked gas sets out how, pending the outcome of the review, “it would not be appropriate for the development of any LNG terminals in Ireland”.
Mr Griffiths expressed his frustration at the policy, saying his project would not use fracked gas.
The Department of the Environment outlined how applications related to the decommissioning of Kinsale infrastructure were under consideration, include leaving pipelines in situ.
[ Factory ships to double gas capacity in NetherlandsOpens in new window ]
A spokeswoman for the Minister Eamon Ryan said it would be best to wait until the publication of the energy security review next week when asked if Mr Ryan would allow the use of LNG or FSRUs in the future.
She said the term LNG only refers to the way in which a gas can be stored as a liquid. Mr Ryan had previously said State-owned storage capacity would have to be available to Irish people in the event of any supply disruption.
Tánaiste and Fine Gael leader Leo Varadkar on Wednesday characterised the Green Party position on LNG as “more nuanced” than how it is sometimes portrayed. He said Ireland was “in a relatively good position when it comes to gas security”.
“We have gas coming in from Corrib off Mayo and we have two interconnectors coming from the UK,” he said.
However, he noted that the Corrib field was depleting, and said “you never know what might happen to the pipelines coming over from the UK”.
“So to me it would make sense to have an additional source of supply, to have LNG gas storage, to have another way to get gas onto the island,” he added.
