2025-04-10

2. Deputy Ciarán Ahern asked the Minister for the Environment, Climate and Communications if he will intervene to stop the construction of the Shannon LNG terminal; and if he will make a statement on the matter. [18315/25]

I am covering for Deputy Ahern. I thank the Cathaoirleach Gníomhach and welcome the Minister to his new role. This is my first time having an exchange with him in the House. We know the Cabinet has approved the proposal to develop a State-led emergency gas reserve in the form of a floating storage regasification unit, FSRU. This will have the capacity to supply Ireland's entire gas demand for seven days. We do not believe the Shannon LNG terminal is necessary or prudent. I ask the Minister if he will intervene to stop the construction of this terminal and make a statement on the matter.

I thank the Deputy for his question. As outlined in the programme for Government, we committed to taking decisive action to radically reduce our reliance on fossil fuels and achieve a 51% reduction in emissions by 2030, while achieving net zero by no later than 2050. We have been making significant progress in that regard. We also committed to achieving 80% of Ireland's electricity generation from renewable sources by 2030. It is important to use the opportunity to inform the House that by June this year, there will be no coal in our energy generation. There is no peat. We have been moving very quickly and approximately 33% of our energy is generated through renewables in an average year. We want to increase that. As the Deputy said, I recently sought approval to proceed with the development of a State-led strategic gas emergency reserve. This is a transitory measure, as identified in the energy security review to secure Ireland's energy systems in the medium term as we continue to transition, as detailed in our climate action plan, to indigenous, clean renewable energy. The mitigation measure will be complemented by other actions identified in the energy security review which focus on securing Ireland's future energy system in the long term by moving from an oil- and gas-based energy system to an electricity-led system, maximising our renewable energy potential, flexibility and integration into Europe's energy system. I fully stand over the decision we made on the State-led strategic gas reserve. I would be in dereliction of my duty if I ignored the advice we got about the risk to Ireland's electricity generation - and the risk to Ireland full stop - if we did not have a strategic gas reserve. The plant to which the Deputy referred, the proposed Shannon LNG terminal, is a privately owned, commercial proposal. The assessment of a planning application for this development is a matter for An Bord Pleanála. I will not be intervening.

I thank the Minister. I am disappointed to hear his reply. Given that the FSRU would, in theory, provide sufficient gas reserves, how can we have faith in the Government's commitment to end fossil fuel use and to reach our targets? Is it a case that the FSRU will not provide sufficient energy security and the Minister feels we need the Shannon LNG too?

No.

I know he referenced coal but greenhouse gas emissions from LNG are 33% more potent than coal. Building an LNG terminal would lock us into fossil fuel reliance for decades. We declared a climate emergency in 2019. I remember having an exchange with a former Green Party TD before the election who assured me the Government's new planning and development Bill, which was then before the previous Oireachtas, would not allow the approval or construction of LNG infrastructure. It is clear that what the Labour Party was pointing out before the election about the planning and development Bill is true.

I need to get clarification from the Deputy's own party on whether it supports the State-led strategic gas reserve. I am not sure where the Labour Party stands on that. All parties should support it because there is a risk to our country, society and economy if we do not build it. We have an oil reserve but we do not have a gas reserve and we need that. It will be State-led. On the other matters, such as the planning application the Deputy referred to, any application for fossil fuel infrastructure will be subject to planning, consenting and regulatory approvals by the relevant bodies and the provisions of the Climate Action and Low Carbon Development Act. That is important. Those conditions will apply but the policy statement on the importation of fracked gas will no longer have to be considered. I have been clear on that. I have set that statement aside. I believe that is the right thing to do because the legal advice received by my predecessor was that we could not make a distinction between types of gas. That legal advice was very clear but it was not acted upon. Such a distinction would have made the delivery of any type of strategic gas reserve incredibly difficult. The matter of any private entity making an application for anything in this country goes through the normal planning process. It will be assessed by An Bord Pleanála in line with our legislation. I will not be intervening.

I will make very clear my own position. I do not support the FSRU. The Labour Party believes we cannot justify this if we intend to be very serious about reaching our climate targets and achieve a 51% reduction in emissions by 2030. In light of the 2021 policy statement, which introduced a moratorium on LNG and fracked gas, and the Government's independent analysis which raised a range of risks associated with such a development, we are very concerned because the Shannon LNG terminal will be a permanent commercial enterprise that will lock us into fossil fuel dependance for decades to come. We could be eligible for up to €26 billion in fines if we increase our fossil fuel use. The Irish taxpayer will have to pay for this for decades to come.

We are absolutely committed to continuing the transition to renewable energy. We are making progress on that with onshore wind. We have created the infrastructure, which I set up in my previous Department under the marine planning Act and the creation of the Maritime Area Regulatory Authority, MARA. We have six planning applications in for offshore renewables. I will bring forward proposals to Government shortly regarding the acceleration of the designated maritime area plan, DMAP, process. Ireland's future is with green energy. It will be good for our economy, climate and people. In the meantime, we have to make sure we prepare for events we cannot foresee. When I received very clear advice in the 2030 energy risk report that our energy system is at risk and we do not have a strategic gas reserve, I had to act upon that. I am interested to note the Deputy has confirmed the Labour Party is opposed to having a reserve. I take it the party is opposed to the oil reserve we have in this country already. We will continue to accelerate the transition away from fossil fuels but we have to protect our energy infrastructure. If we had an event that disrupted the gas supply, be that from the Corrib gas field or Scotland, we would have maybe three days of normal energy supply. With regard to gas, however, the report determines that as a transitional measure we will examine the introduction of a strategic gas emergency reserve to address security needs in the medium term. It will be used only if a disruption to gas supplies occurs. Inability to meet peak gas demand during a cold spell would mean curtailing gas demand to balance the system. By 2030, our target is that 80% of our electricity is expected to be produced from renewables, meaning our overall gas demand is expected to decline. Having said that, the projections are peak gas demand will continue, or will not begin to decline, until about 2035. The electrification of the heat and transport sector will mean increased peak day electricity demand. During those periods where variable renewable generation is largely not available, gas backup is expected to be used, especially when support from batteries and electricity demand-side response is exhausted. On this basis a strategic gas emergency reserve in the form of the FSRU has been approved by Government to secure Ireland's energy systems as a transitionary measure. A strategic gas emergency reserve will provide the resilience highlighted in that report and will mitigate the consequences for our society and economy of a significant gas supply disruption in Ireland.