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Energy Infrastructure
Senator Kennelly urged immediate approval of the Shannon LNG terminal, arguing Ireland’s gas system is dangerously exposed and that the project would add security and lower prices at no Exchequer cost. The Minister of State said the Government’s priority is a State-led strategic gas emergency reserve and would not comment on the separate live planning application for Shannon LNG.
I welcome the Minister of State, Deputy Feighan, to the floor this morning. We are living through an energy emergency not in theory but in reality, and the State knows it. Two years ago, the Government ran Exercise Cathal, a national simulation to test how Ireland would respond to major disruption in our gas supply. That exercise was not academic; there was a clear acknowledgment that the risk is real, that the consequences would be catastrophic for Ireland and that the Government knows lives and livelihoods will be lost. Ireland is dangerously exposed. The State has understood these risks for years. It knows the economic and societal impact of a future supply failure yet despite that knowledge, we continue to rely on a single point of gas supply. We still have no meaningful storage and we remain as vulnerable today as we were before these risks were ever formally identified. There is talk about a Gas Networks Ireland, GNI, liquefied natural gas, LNG, terminal but that is years away. That is just too long.
Since the war in Iran started on 28 February, just over six weeks ago, we have seen the cost of fuel and energy costs spiral out of everyone's reach. This is the most serious energy crisis we have faced since the 1970s. Energy costs remain too high for households and businesses alike and our energy security is completely fragile. At a time when decisive action is needed, what we see instead is complete delay. I will come to one specific delay. There is one project in this country that is capable of addressing both security and cost: the Shannon LNG terminal. This is not a speculative or early-stage proposal; it is the most advanced LNG project in Ireland. It has been in the planning system since 2021. It was refused but that refusal was based solely on Government policy - the so-called fracked gas policy, which has since been removed. That project went through the courts and succeeded. All judicial reviews are now complete. The legal position is very clear, the policy landscape has changed and every obstacle that was previously cited has now been addressed, but still no decision has been made.
The project has spent many years in the planning system, years that we simply do not have right now in the context of an energy emergency. What makes Shannon LNG so important right now is not just that it enhances security of supply but also that it can be delivered quickly and without cost to the taxpayer, which is what we all want. As a commercial terminal, it introduces competition into the Irish gas market. It is competition - not a monopoly, which is feared. It will lower prices, and that is one of the key points.
While the Government proposes the strategic gas emergency reserve, we must be honest about what that is. It is a State-led, non-commercial facility intended for use in emergencies only. It will require significant public subsidy. It is years away from delivery and it will not reduce energy prices for consumers. The strategic gas emergency reserve has a role and it can follow but it is not a substitute for the Shannon LNG project. The two are not in conflict and they are not complementary. One provides emergency backup and the other provides day-to-day competition, price reduction and security of supply.
Right now, however, we have neither. We are years away from the strategic gas emergency reserve and the one project that is shovel-ready to proceed, the one that is capable of delivering immediate benefits, remains stuck in limbo. The State has known the risks, tested the consequences and acknowledged a vulnerability but it has not acted. This is no longer a question of policy or law. Those issues have been resolved. It is now a question of the decision. How long must this process continue? I represent the people in this regard. I am conscious of the economic consequences for north Kerry. I am asking how long we must delay critical infrastructure while families and businesses continue to bear the cost of inaction. How long can we justify remaining dependent on a single supply route when the risks are so clearly understood? The time for analysis and delay is over. I call on An Coimisiún Pleanála to issue its decision on Shannon LNG without further delay and to bring clarity to a process that has gone on for far too long. This is critical national infrastructure. It is urgently needed and ready to proceed, and it must now be allowed to move forward.
Comment on this
I thank the Senator for raising this serious and indeed topical issue in the current climate. We are effectively in the middle of world war three and energy supplies and many other issues are coming to the forefront which we must deal with as a Government, not just in Ireland but across Europe and across the world.
In March 2025, the Government approved the development of a State-led strategic gas emergency reserve, SGER, in the form of a floating storage and regassification unit, FSRU. The delivery of a gas reserve is critical to Ireland’s energy security as we continue to transition to indigenous, clean renewable energy, and will also ensure compliance with EU standards and regulations. The Government position on the need for a State-operated strategic gas emergency reserve, in the form of a floating storage and regassification unit that will store liquified natural gas, LNG, has been very clear. The strategic gas emergency reserve is a priority project of a strategic nature required to mitigate the major consequences for our society and our economy that would arise if Ireland was to experience an interruption to our gas supplies via subsea interconnection. It is not intended for commercial use. The LNG will be held in reserve at the appropriate scale to maintain supplies for the duration of the disruption.
In identifying this as the optimal approach, the Department built upon the extensive review of security of Ireland’s gas and electricity systems which was approved by Government in the Energy Security in Ireland to 2030 plan in November 2023. The SGER will be owned and operated on behalf of the State by the transmission system operator, Gas Networks Ireland, GNI. Having assessed a range of options, the FRSU was recommended by GNI to meet the Government’s criteria and requirements to quickly develop a strategic and emergency gas reserve aligned with the Climate Act. The SGER will not increase gas demand and will be divested when no longer required, thereby avoiding the risk of fossil fuel lock-in or stranded fossil fuel assets. A policy, legislative, regulatory and operating framework for the SGER is now being progressed to give effect to the Government decision and direction. Any application for an alternative commercial LNG facility will be subject to the statutory planning, consenting and regulatory approvals by relevant bodies, and the appropriate provisions of the relevant legislation will apply.
The request for comment on LNG projects, and Shannon in particular, refers to a private project. This project is currently the subject of an active application for consideration before An Coimisiún Pleanála. Therefore, it would not be appropriate for the Minister to comment at this time.
Comment on this
I thank the Minister of State for his reply. We are in the depths of despair in relation to our energy and fuel costs right now. We have a planning project that is shovel-ready. It is at no cost to the Exchequer and will bring about a reduction in the price of fuel and energy costs to the people of this country. It has been going on. Basically what we are looking for here is a regular update on where it is. It has been going on for far too long in my area. It needs to be prioritised today. We need regular feedback on its progress to secure our energy needs for this country in a time of crisis. There is no justification for stalling this project. Everyone knows the cost of everything right now. We are in the midst of world war three, possibly. Let us avoid any further headaches in relation to the costs spiralling for everybody in this country. If we do not have emergency back-up of our fuel energy supply, it will get out of proportion altogether. I am asking for the Department just to check up on this and see where it is at, and to secure it. Let us get it over the line. It is a three-year construction job, not three months. The Germans have brought in 12 LNG terminals to secure their energy future. We cannot bring in one. It is very disappointing. I am calling for this to be prioritised with the Department and for it to be taken up the line to secure this for the future.
Comment on this
I thank Senator Kennelly for raising this very important issue. The Government position on the need for a State-operated strategic gas reserve in the form of floating storage and a regassification unit that will store liquified natural gas has been very clear. The strategic gas emergency reserve is a priority project of a strategic nature, required to mitigate the major consequences for our society and our economy that would arise if Ireland was to experience an interruption to our gas supplies via the subsea interconnection. As I said, it is not intended for commercial use. As the planning application for the Shannon LNG project currently with An Coimisiún Pleanála is a private project, the Minister for climate and the Department have no function. However, there are difficult, choppy waters ahead. The Government must have cool heads and we must all try to work together to navigate this very important issue and many other important issues we will face in the future. I thank the Senator again.