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For
Immediate Release
Press
Release November 14th 2023:
Irish Green
Party Leader,
Energy Minister Eamon Ryan, officially signals his intention to make an
LNG U-turn on the current government policy against LNG terminals and
the importation of fracked gas into Ireland.
It is amazing to see how
a Green Party Minister for Energy can argue that the construction of
new Large-scale LNG fossil fuel infrastructure can bring more energy
security to Ireland. And what is worse is that the Irish householders
will
be expected to pay for it.
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Energy
Minister, Green Party leader Eamon Ryan, has today signaled his
intention to reverse the Green Party policy banning LNG fracked gas
terminals in Ireland in his new Energy Strategy, rolling back on his promise "to
implement the
policies which will see an end to the importation of fracked gas via
any LNG terminals in Ireland".
His intentions to support the construction of
a floating LNG terminal in Ireland similar to the proposed Shannon LNG
terminal were finally published in his long-awaited Energy Security
Review which outlines a new strategy to ensure energy security in
Ireland to 2030 - entitled "Energy Security in Ireland to 2030".
Action 17
of the new Energy strategy published today states that "based on
preliminary analysis of the Department, it is anticipated that a
Floating reserve (FSRU) will best meet these criteria" to
introduce a
"Strategic Gas Emergency Reserve to
protect Ireland in the event of a gas supply disruption as Ireland
makes a secure transition to
majority renewable energy". An FSRU
(or Floating Storage
Regasification Unit) is in fact a floating LNG terminal similar
to the one
proposed by Shannon LNG.
It is amazing to see how a Green Party Minister for Energy can argue
that the construction of new Large-scale LNG fossil fuel infrastructure
can bring more energy security to Ireland. And what is worse is that
the Irish householders will be expected to pay for it - a fact that Shannon LNG
will use to its advantage as it lobbies Irish politicians.
The LNG ban in
Ireland is being unacceptably chipped away at:
- It started off in April 2020, when the
leaders of Fine Gael and Fianna Fáil, as a precondition to talks on the
formation of a government with the Green Party, both agreed in writing to Eamon Ryan that "both of our parties accept that as we
move towards carbon neutrality, it does not make sense to build new
large-scale fossil fuel infrastructure such as liquid natural gas
import terminals".
- Then, on exiting the talks the Green Party
got a reduced agreement in the Programme for Government that "As
Ireland moves towards carbon neutrality, we do not believe that it
makes sense to develop LNG gas import terminals importing fracked gas".
- Then, in June 2020, Minister Eamon Ryan tweeted ".@SafetyBeforeLng
be rest assured, if we can agree to the #PFG [Programme for
Government] we will implement the
policies which will see an end to the importation of fracked gas via
any LNG terminals in Ireland".
- Then the historic world's first policy against the importation of fracked gas
published in May 2021 only banned LNG terminals in Ireland until the
Energy Review was completed.
- Then, in September 2022, Eamon Ryan's
Department published a short-list
of preferred options which ruled out only "commercial" LNG terminals.
- Now, today, the Energy Strategy published
by Minister Ryan proposes to support a
"State-led Strategic Gas Emergency reserve" floating LNG terminal which
could be somewhat commercial because it notes that:
- a)
"State-led means commissioned by the State",
- b) "it
does not preclude a public-private partnership nor the involvement of
private firms contracted to provide, build or operate the necessary
infrastructure",
- c) "it
is a similar approach to the energy security measure in place for oil
security, through NORA [the National Oil Reserves Agency]" which
the Energy Strategy notes "From
time-to-time NORA does have to replenish its reserves as oil quality
can deteriorate over time. As a consequence, it effectively trades some
stock ...".
What
is also interesting is that the Energy Strategy highlights that in the
Spring of 2023, the International Energy Agency (IEA) recommended that
Ireland should "consider the option
of a Floating Storage and Regasification Unit (FSRU) as a strategic gas
storage asset and a potential back-up for renewable energy". We
question the objectivity of this opinion being accorded such prominence
in the Energy Strategy, given that around the same time, on March 30th
2023, the IEA announced that Minister Eamon Ryan is to be lead co-chair of the IEA from 2024.
Over 200
groups from a cross section of Irish and International society
had signed an open letter to Minister Ryan in April calling on him to
confirm he would not make any LNG U-turn on the current agreed
government policy against LNG and the importation of fracked gas to
Ireland. Their calls are being ignored. Indeed, in today's press
conference, Minister Ryan is quoted as saying "he had flagged 'the State-led strategic
store' to his party and to environmental NGOs and there was no issue
about it".
This has major implications for New Fortress Energy's proposed Shannon
LNG US fracked gas import terminal after irish planning authorities refused
development consent because
it ran contrary to the country's official government policy against the importation of fracked gas via
LNG terminals. Shannon LNG has now appealed
this decision to the High Court, where there is now a risk that An Bord
Pleanála will agree to remit its decision for further
consideration to allow the project go ahead as quickly as possible.
The Minister for Energy, Eamon Ryan, after consultation with Gas Networks Ireland will return to Government
for a final decision on the optimal approach to deliver the emergency
gas reserve in quarter 2 of 2024 .
However, the Energy Strategy goes on to state that the solution
proposed must be in line with the criteria that it must be "a proposal which does
not inadvertently increase gas demand by increasing the supply
available on the market". This does not rule out a "commercial"
LNG terminal along the lines of Shannon LNG because Gas Networks
Ireland is not an honest broker as regards Shannon LNG and may play with words to find loopholes for Shannon LNG:
- Gas Networks Ireland seems to have worked directly for Shannon LNG in drawing up
part of the planning application for the fracked gas import terminal in
Tarbert, contrary to Government policy,
- Instead of reducing gas demand in the
country, Gas Networks Ireland are expanding the network and boasted of connecting 7,000 new homes to the gas
network in the year up to July 2022,
- Gas Networks Ireland states in its Network Development Plan 2021 that in its "New
Towns and Suburbs policy" that "Nenagh, Wexford, Listowel and
Ballymahon have recently been connected to the gas network along with a
new connection to Center Parcs in Longford. Gas Networks Ireland
facilitate further new town connections to increase the penetration of
the gas network in Ireland".
- Gas Networks Ireland also states in its Network Development Plan 2021 that "by 2030 data
centres and other large users could consume 23% of Ireland's
electricity" but refer to this , not as a gas demand challenge, but
rather as "a potential growth sector" where "natural gas can be used
for onsite electricity generation".
Minister Eamon Ryan needs to tighten up the criteria and requirements
determined by his Department under which Gas Networks Ireland will
prepare a detailed proposal to introduce a gas reserve because Gas
Networks Ireland has an observed strategy of increasing gas demand in
the country. The Energy
Strategy currently only outlines 4 criteria - quick implementation, no
inadvertent increase in gas demand, cost-effective and compatibility
with
the 2015 Climate Act. The current criteria are skewed in favour of
Shannon LNG - a fact highlighted by a pro-LNG politician who already
mentioned the precedent of NORA, even before the Energy Strategy was
published (claiming that "There is precedent for the involvement of private operators. An oil
storage facility owned by the State through the National Oil Reserve
agency, NORA, is operated by the private company Zenith on Whiddy
Island")
. Allowing an end to the LNG ban is ultimately a political decision in
the hands of Minister Eamon Ryan, Leader of the Green Party and
Minister for Energy in Ireland.
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