Limerick Chamber has today issued a statement outlining its deep disappointment at what has been described as a ‘massive blow’ to industry and a ‘missed opportunity’ to decrease our risk of energy interruption arising from our heavy dependence on imported gas via the UK.
In it’s submission to the Department of Environment, Climate and Communications for the Review of Security of Energy Supply and Ireland’s Electricity and Natural Gas Systems in October 2022, Limerick Chamber highlighted that while the organisation is very supportive of the role of renewables in Ireland’s future, there is a transitionary gap to pass through in the interim, and that an adequate plan for energy security was urgently needed.
The submission pointed out that as far back as 2017, EirGrid has been highlighting the gap in supply and demand of energy. Ultimately, in its submission, Limerick Chamber advocated for the introduction of Liquified Natural Gas (LNG) into Ireland, emphasising its significance for national energy security, its potential to aid gas storage through a Floating Storage Regasification Unit (FRSU) and its alignment with the European Union Policy on LNG. The submission which noted Limerick Chamber’s concern around fracked gas, also addressed the possibility of importing LNG from non-fracked sources outside the United States of America.
Limerick Chamber further highlighted Ireland’s serious vulnerability given its reliance on the United Kingdom for our energy supply which will only be compounded as the Corrib Field dwindles. The business representative group also highlighted that this reliance on the United Kingdom supported the indirect importation of fracked gas, which could have been mitigated if Ireland built an LNG terminal and only allowed for the importation and storage of non-fracked gas.
Miriam O’Connor, President of Limerick Chamber said
The decision of An Bord Pleanála is a massive blow not only to the developers of the LNG terminal at Ballylongford, who have waited four long years to be refused planning permission, but to all private investors in the energy industry looking at Ireland as an investable proposition. Delay equals cost, and the lack statutory timelines in the planning process is a major concern and ultimately could prove a barrier to future investment in Ireland by private energy investors. We all support the longer term goal of a green energy corridor off the west coast of Ireland, but addressing the policy void to deal with the immediate risk to our energy security must be a priority for Government
Dee Ryan, Chief Executive, Limerick Chamber said
European Union Taxonomy Regulations provided a clear view on natural gas being a sustainable transitionary energy source and for good reason. While EU countries are rapidly moving towards developing sustainable energy sources, gas was seen as an improvement over oil until we had the critical mass in place to harness wind energy. The Climate Delegated Act approved by the commission in February 2022 reinforced this stance and was passed in July 2022 without any objection. Limerick Chamber had three representatives on The Shannon Estuary Economic Taskforce, and we are huge advocates for offshore renewable energy (ORE), however, that process also gave us a unique perspective to understand the large lead-in time for ORE and how LNG could have aided us in the interim and decreased reliance on one source of gas from the UK. The length of the whole process with regards the planning for the LNG highlights that the review of the planning system is now more critical than ever if we want to take advantage of investment so that we don’t remain outliers within the EU
Seán Golden, Chief Economist and Director of Policy, Limerick Chamber said
Despite almost one year passing since the launch of the energy security review draft, we are still waiting for the final publication. In a time when the world is in an energy crisis, Ireland has failed to adequately react quickly to the crisis and the decision by An Bord Pleanála could compound future crises and it certainly makes us more exposed to external shocks given how reliant we are on the UK. The failure to grant permission for the LNG terminal is a huge blow for energy security. Ireland is the only country in the EU without gas storage, we are also one of the very few countries with no LNG terminal. The decision puts Ireland at odds with EU energy policy in a time where other EU countries are rapidly advancing the construction of LNG terminals. The introduction of LNG into Ireland would have been a huge win for Ireland in terms of security of supply. When it comes to decisions like this, a balance of policy is required. While the Government has a policy of moving away from fossil fuels, its crucial to balance this with other policies that require the security LNG offers. Ireland being on the periphery of Europe geographically, is now at the periphery in terms of energy policy
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