Growing fears that Ireland will
be told to artificially manufacture an economic crisis by the European
Commission through premature rationing of gas.
·
Ireland
only imports gas from non-EU third countries Norway and the UK; Ireland does
not export gas to any EU Member State; currently there is no rationing of gas
in the UK with which Ireland constitutes a single gas market; current glut in
gas in the UK sees UK interconnectors to Belgium and the Netherlands operating
at full capacity.`
·
After all the fearmongering
that the British could cut off gas supply to Ireland, we are now in the more realistic
scenario where it is actually the European Commission that will be asking
Ireland to reduce its use of the Irish interconnectors from Scotland.
Fears are growing that an
economic crisis will be artifically manufactured in Ireland under the
orders of
the European Commission following media reports from the Irish
Business Post that the EU is "to
order members to cut gas use". Ireland, the newspaper claims,
will be
asked to comply with the plan and also ration its gas later this week.
The
rationing would take place in spite of the fact that Ireland does not
deliver
or receive gas directly from any other EU Member State. All the gas
imported into
Ireland comes from the UK and Norway - both non-EU countries.
Under
the Article 13 Solidarity
rules of the Security of Gas Supply Regulation (EU)
2017/1938
"A
Member State shall also
provide the solidarity measure to another Member State to which it is
connected
via a third country unless flows are restricted through the third
country. Such
an extension of the measure shall be subject to the agreement of the
relevant
Member States, who shall involve, as appropriate, the third country
through
which they are connected."
However,
Ireland is not directly
connected to any EU Member State because of Brexit and cannot offer any
solidarity because gas flows from the UK to Ireland are uni-directional
and
there is no reverse flow in place.
Article
13 of the EU Security
of Supply Regulation requires that before a solidarity measure is
implemented
Ireland must formally agree, must involve the UK third country in any
solidarity measure, must only take the measure as a last resort, must
implement
the measure on a voluntary basis as a first step and the measure is
subjected
to the "maximum interconnection
export capability of the relevant Member State infrastructure towards
the
requesting Member State". Given that the UK is currently
pumping gas
to Belgium and the Netherlands at
full capacity due to a glut of gas in the UK at the moment
(with the spot
price of
gas in the UK still lower than when the war in Ukraine escalated in
February), the
Irish government would be doing serious economic damage to the country
without solving
any of the issues the rationing of gas in Ireland would claim to solve.
That would
amount to artificially manufacturing economic problems in Ireland under
the
orders of the European Commission.
Since
January 2021, the UK is
no longer required to provide gas supply solidarity to the EU. In June,
it was
reported by the Financial
Times that the UK will cut off supplies to Belgium and the
Netherlands if
necessary. The Irish
Times then reported that Irish consumers would be treated the
same as those
in the British market in the event of any gas shortages, according to
the company
operating the UK National Grid.
Gas
Networks Ireland’s Head of Regulatory Affairs, Brian
Mullins,
stated on July 15th
“As
we move further into the summer, we do not
envisage any disruption to gas supply in the immediate future and we
continue
to monitor the evolving situation in terms of Russian gas supplies to
Europe.
Ireland’s gas requirements continue to be met by indigenous
supply from the
Corrib gas field and via the interconnection with the UK, which is
largely
sourced from UK indigenous sources and Norway.”
The
Irish
and UK gas networks are so heavily intertwined that they are
considered to
be the one gas market, allowing Ireland to benefit from all the UK gas
storage,
diversity and security of supply. The Scotland-Northern Ireland
Pipeline (SNIP)
branches off from the Irish-owned Interconnector 1 from Moffat at
Twynholm.
Further gas supply to Northern Ireland passes from the uni-directional
south-north interconnector from Interconnector 2 arriving at
Gormanstown in
County Meath. The Isle of Man, a British Crown dependency in the Irish
Sea, is
supplied by gas from the Irish-owned Interconnector 2. It is clear that
if the
UK stopped gas flowing through the interconnectors to Ireland then this
would
have an immediate destabilising impact in Northern Ireland and the Isle
of Man.
On July 3rd, however, in what was seen as an attempt to muddy the
waters, it
was unrealistically claimed in the Irish Business Post newspaper that
it could
be technically possible for the UK to cut off gas supply to Ireland
while
continuing to supply Northern Ireland. No explanation was given as to
how this
could happen, under what conditions and how it could be done without
breaching
existing bilateral agreements between the UK and Ireland
.
It
is ironic that while some
quarters have been hyping up the fear that the British could cut off
gas supply
to Ireland, we are now in the more realistic scenario that it is
actually the
European Commission that will be asking Ireland to reduce its use of
the Irish
interconnectors from Scotland.
If
gas is rationed in Ireland unnecessarily
it will cause inflation in the price of raw materials for food
production and a
reduction in agricultural output at a time of a growing world food
crisis.
If
the European Commission
wants to have more access to US fracked gas, then that is all the more
reason
for Ireland to refuse to build US fracked gas
terminals which would be
in
competition with other LNG terminals in other EU Member States.
|