Vol. 559 No. 2
151 Mr. J. O'Keeffe asked the Minister for Communications, Marine and Natural Resources the details of the emergency oil reserves held by the State; the locations they are maintained; if he has satisfied himself that they are adequate to cope with global scarcity arising from a war in Iraq; and if not, his proposals in this regard. [26045/02]
As a member of the International Energy Agency (IEA), Ireland is required to maintain oil stocks equivalent to at least 90 days of net imports in the previous year. The EU imposes a similar requirement based on consumption.
On 1 October 2002, the latest date for which comprehensive figures are available, Ireland held 2,164,000 tonnes of oil which is equivalent to 118 days of net imports using the IEA methodology. These stocks are made up of (a) stocks held in Ireland by oil companies, major consumers and the Whitegate refinery amounting to 134,000 tonnes of crude oil and 606,000 tonnes of products, a total of 740,000 tonnes – equivalent to 39 days of net imports; (b) stocks wholly owned by the National Oil Reserves Agency – NORA – at the main import locations in Ireland amounting to 560,000 tonnes – 31 days – of oil products. NORA also holds 141,000 tonnes – eight days – of products as stock tickets at the Whiddy Island terminal. These are rented stocks that NORA is entitled to buy in the event of an emergency; (c) wholly owned stocks held by NORA in other EU member states amounting to 140,000 tonnes – eight days – of oil products; and (d) stock tickets held on behalf of NORA in a number of other EU member states amounting to 583,000 tonnes – 32 days – of products.
In the event of a significant global oil supply disruption, the release of these stocks and the activation of other response measures would take place within the framework of the formal emergency regime developed and maintained by the International Energy Agency (IEA), an autonomous OECD body of which Ireland is a member. Under that regime, member states would be entitled to a share of available oil in the event of a reduction of at least 7% in normal supply levels. There are also provisions for a co-ordinated international response to an emerging crisis, without the oil sharing component, in advance of the 7% trigger.
The theory underlying the IEA approach is that the emergency reserves would be eked out over an extended period to supplement supplies which would be available in the normal course. In that regard I am satisfied that Ireland's emergency stock levels are sufficient to minimise the adverse local impact of any global oil supply disruptions that might result from an outbreak of hostilities in the Middle East.
152 Mr. J. O'Keeffe asked the Minister for Communications, Marine and Natural Resources the reason Ireland does not hold stores of gas to ensure security of supply in the event of emergency or war; his views on whether this is not very prudent by comparison with some other EU states, such as Austria, which stores the equivalent of more than 100 days demand; and his proposals in this regard. [26046/02]
Various gas storage options in Ireland have been examined over the years and have been rejected either on technical or cost grounds. The most recent examination was in the context of the Gas 2025 study initiated in November 1997 by Bord Gáis Éireann and the former Department of Public Enterprise. This concluded that a second interconnector was a better option than storage.
Ireland has a high standard of security of gas supply following construction of the second interconnector with Scotland. This duplication of infrastructure is a prudent means of providing security of supply and is employed by other countries. It results in Ireland having two main supply points, the two interconnectors, as well as the Kinsale Field. This ensures a robust gas supply for Ireland.
The capacity of the Kinsale Field to deliver gas during periods of high demand is boosted by means of a re-profiling of the field's supply by the operator, Marathon Oil. In addition, the anticipated new indigenous supplies from the Seven Heads and Corrib fields will increase diversity of supply.
I am conscious that Ireland's demand for natural gas is growing, particularly for new power generation. My Department will keep this under review, including the question of Liquefied Natural Gas (LNG) storage, in the context of ensuring that we continue to have a prudent mix of fuels and supply sources that will enable the needs of the economy to be met without compromising energy competitiveness or security of supply.
