Irish CEO calls for public inquiry over gas policy
The CEO of Mag Mell Energy Ireland, a developer of proposed floating LNG regasification and storage capacity in the Celtic Sea, has called for a public inquiry into the government's handling of energy policy options, which he says has failed to consider pro-gas initiatives that could have "prevented" Ireland's mounting energy "crisis".
In a press statement issued August 30, CEO Paul Griffiths criticised Irish environment and climate minister Eamon Ryan's refusal to engage with his company's bid to build LNG regasification and storage capacity at a County Cork-based development site.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Ryan's department has also declined to consider the renewal of upstream exploration licences where the operator has not yet started on their licence commitments, Griffiths added. Moreover, a pledge to halt gas transit via a key pipeline to Kinsale and decommission its existing infrastructure had not been "taken off the table."
"It is critical that our policy makers accept that renewable energy needs to be backed up by gas-fired generation. There should be no surprise in that," Griffiths said.
Mag Mell plans to use the Kinsale pipeline's subsea terminus to connect two floating storage and regasification units, bringing much needed regasified LNG into the Irish grid. Key benefits include the lack of a need for a new onshore infrastructure, Mag Mell says.
Griffiths' comments were timed to coincide with a forthcoming parliamentary committee appearance by Ryan, who can expect to be pressed by Irish legislators on rising gas and electricity bills that have resulted from the ongoing energy crunch.
Around 70% of Ireland's gas intake comes from the UK via a subsea interconnect, though Ireland also receives limited volumes from the Vermilion Energy-operated Corrib gas field, which lies in domestic Atlantic Sea waters. Corrib was once expected to contribute around 260mn ft3/day but has since entered decline, with its reserves forecast to be depleted by 2026-27.
There are at least two proposed Irish LNG import terminals including the Mag Mell project. The government has largely opposed LNG imports as it says it cannot guarantee they will not bring in shale gas from the US extracted using hydraulic fracturing. Mag Mell says its terminal would accept only non-fracked gas deliveries.
Griffiths warned Ireland risks becoming entirely dependent on UK-sourced gas because of government policy. He added: "Time is very much of the essence if we are to avoid a situation where Ireland becomes 100% reliant on a single source of gas supply via the UK pipeline.
"Alarmingly, this appears to be the scenario minister Ryan is sleepwalking into as the Corrib gas field depletes over the next four years. Sole reliance on a single external gas supplier means Ireland will relinquish any control it has on price and supply, needlessly increasing volatility and risk. Any UK price hikes will inevitably impact the Irish consumer."
Mag Mell Energy Ireland is a subsidiary of London-listed responsible hydrocarbon reserves developer Predator Oil and Gas. The company is working to deliver an LNG import terminal and gas storage centre in Ram Head, County Cork, which Griffiths says would provide capacity to meet roughly one third of Ireland's peak gas demand.
"Its incredibly disappointing that there has been no engagement from department officials on the Mag Mell proposal since it was initially presented to them over two years ago," Griffiths concluded.
"Furthermore, we’ve received radio silence from minister Ryan despite ongoing attempts to explain in detail the unique opportunity the Kinsale gas pipeline offers Ireland. Had the offshore importation and storage option for non-fracked gas been implemented when it was first presented, this winter’s energy emergency and price inflation could have at least been ameliorated."